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Rainy day cover: IAG trials its new Poncho product

IAG may introduce a new motor insurance name among its established stable of brands pending the outcome of a product trial currently taking place in NSW.

Created last October, Poncho Insurance aims to “shake up” the industry, offering consumers “stress-free, fluff-free” comprehensive car cover on a monthly subscription basis.

The product is designed with flexibility to the fore, with customers allowed to have more than one car insured under one policy.

An IAG spokesman told the name fits the meaning of the original Chilean native word. Like a poncho, it’s something people need on a metaphorical (and sometimes literal) rainy day.

“Our research shows that how customers live and move from A to B is changing,” the spokesman said.

“There’s a segment of customers in Australia who want more flexibility in the products or services they use. With this demand we see an opportunity to create different insurance products.

“Poncho Car Insurance is like a monthly subscription with no lock-ins or cancellation fees, created to offer customers a simple and flexible insurance product for their changing needs.”

IAG has received “great” feedback from the trial so far, but the spokesman says no decision has yet been made if and when to formally launch the brand nationally.

According to a blog post by the new brand, the philosophy behind its business model is simple.

“When you buy Poncho Insurance, you do it on your own terms. We don't want to trick you into staying with us long-term, or limit what you can add to your cover.

“We simply offer you everything in one package, and you get to decide how long, how many, and how much. We wanted you to take one look at us and say ‘where have you been all my life’?”