Norwich Union appoints IBM and Orange for Pay as You Drive Insurance

Article date: 12 March 2003

Norwich Union has signed a deal with IBM and Orange UK toprovide the technology and telecommunications for its revolutionary‘Pay As You Drive’™ * insurance programme.

The UK’s largest general insurer’s innovativeventure will see data collected from a telematic device in acustomer’s car and an insurance premium calculated based onwhen, where and how often the car is used.

Based on its expertise in the automotive and insuranceindustries as well as in telematics technology, IBM has been chosenby Norwich Union to provide the telematic architecture, hardwareand software, and device specifications, to support this innovativeapproach to insurance.

Orange, the UK’s most popular mobile communicationscompany, will supply the robust and highly securetelecommunications network infrastructure. The Orange network willtransmit data from vehicles to Norwich Union.

Robert Ledger, ‘Pay As You Drive’™ programmedirector at Norwich Union, said: “Behind the scenes, we havetaken the time to choose the right partners. This is a majorresearch and development programme with Norwich Union customers,and it is essential we have leading experts in these industrieswith proven ability to deliver as well as maintain superiorcustomer focus.

“Both IBM and Orange have shown the pedigree and vision towork with us on this exciting venture.”

Bill Pieroni, general manager for IBM Global Insurance Industry,said: “Telematics technology is already proving itstremendous value to drivers and passengers with added safetyfeatures, new services, and entertainment. Now we want to helpdetermine whether this on-demand approach to insurance coupled withIBM services and infrastructure can benefit the insurance industryand motorists with more accurate insurance premiums based on actualvehicle usage.

“This is a clear example of how IBM can bring together itsworld- leading technology expertise to help new partnerships acrossdifferent industries forge pioneering product and serviceinnovation."

Neil Laidler, head of corporate customer development, OrangeBusiness Solutions, added: “Orange is committed to deliveringinnovative services that simplistically enhance people’slives. We are delighted to bring what we have learnt fromdeveloping ‘pay-as- you-talk’ solutions to help NorwichUnion deliver a revolutionary insurance service to itscustomers.”

Norwich Union has an exclusive agreement covering the UK andEurope with pioneer US insurer Progressive to use data collectedvia telematic technology and the company’s unique pricingmethod to calculate premiums. This heralds a major breakthrough inthe calculation of more accurate motor insurance premiums, givingthe customer greater control, flexibility and choice.

‘Pay As You Drive’™ is due to be piloted thisyear with 5,000 volunteer motorists. Any customers interested intaking part in the pilot, which will last up to two years, canregister at or e-mail

For further information contact Jenny Chapman at NorwichUnion on 08703 66 68 64/07775 822642, or Bill Mew at IBM on 0207207 5769, or Sally Quigg at Orange on 020 7984 2000

Notes to editors

  • Norwich Union Insurance is the UK's largest insurer with amarket share of around 16 per cent and is more than 1.5 times thesize of its nearest rival. It is also the largest personal linesinsurer.
  • It has a focus on insurance for individuals and smallbusinesses. It insures:
    • one in five households
    • one in five motor vehicles
    • more than 700,000 businesses
  • Norwich Union products are available through a variety ofdistribution channels including brokers, corporate partners suchas banks and building societies and Norwich Union Direct.
  • Norwich Union’s news releases are available on the Avivaplc website at
  • A selection of images is available from the Norwich UnionNewscast site at
  • An ISDN facility is available for studio quality broadcasts.Call the press office on 08703 66 68 68.

For all life and pension media enquiries 08703 66 68 73. For allother media enquiries 08703 66 68 68.

* Progressive (NYSE:PGR), with headquarters in Mayfield Village,Ohio, is the fourth largest motor insurance company in the US. Inbusiness since 1937, the company provides all drivers in 48 USstates and the District of Columbia with competitive rates and 24hour, in-person and online services. European patent applicationno.s 97904096.1 and 01303501.9. Licensed from Progressive CasualtyInsurance Company, USA.

About IBM

  • IBM is the world's largest information technology company,with 80 years of leadership in helping businesses innovate. IBMoffers a broad range of capabilities - consulting, IT services,hardware, software, research and financing -- to help companies ofall sizes realise the full value of information technology.
  • IBM works with specialist IBM Business Partners to deliver anadvanced, flexible and reliable portfolio of Telematics Solutions.Addressing issues such as safety, privacy, convenience andconnectivity, our in-vehicle information systems and solutionsenable our customers to deliver hands-free and eyes-freetechnology as part of developing invaluable and long-termrelationships with their customers. Through its specialistindustry consulting, services and solutions, IBM helps itscustomers, including insurers, to achieve economies of scope andscale, reduce their capital costs, cut expenses and offer newproducts and services faster.
  • To learn more please visit

About Orange

  • At the end of December 2002, Orange UK had over 13.3million
  • active customers, more than any otherUK network, making it the UK’s number one.
  • The fifth annual J.D. Power and Associates UK Mobile CustomerSatisfaction Study published in May 2002 showed that Orange ranksas the number one telephone service for customer satisfaction inthe contract sector in the UK. In September 2002 Orange UK won theMobile Choice consumer award for Best Network; Mobile Choice said‘Orange received glowing accolades for every aspect of itsservice – coverage, reliability, customer service andtariffs.’
  • Orange UK provides high quality coverage to 99% of the UKpopulation, and offers roaming to pay monthly customers on 287networks in 127 countries and to pay as you go customers on 24networks in 19 countries.
  • Orange, wirefree and any other Orange product or servicereferred to in this release are trademarks of Orange.
  • Information about Orange can be found on the Orange website and media information can be found
  • For further information, call the Orange media centre on 0207984 2000 or 07973 201911

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