Article date: 17 December 2004
Norwich Union has written to all its brokers urgingthem to back the industry’s drive to call a halt to theboom-bust volatility of the underwriting cycle.
John Seaton, underwriting and pricing directorat Norwich Union, commented: "Breaking the pattern of constantlyfluctuating premiums is in everyone’s best interest –intermediaries and their clients, as well as insurers. It is up toall of us in the industry to end the volatile cycle of highs andlows. Insurers need to improve the accuracy of premium planning.But we also need our intermediary partners to support us in thepursuit of stability. Particularly in the commercial arena, chasingthe lowest premiums for clients may well gain brokers short-termpopularity but unsustainable prices will inevitably lead toover-inflated hikes in the future."
The company has also produced a guide to futurerisk, highlighting effective forward planning for emerging risks asone of the cornerstones of accurate premium calculation.
From obesity to nanotechnology, electro magneticfields to cyber terrorism, the A to Z of risk booklet looks at theraft of new types of risk linked to socio-demographic, economic andpolitical change in the UK.
John Seaton added: "At Norwich Union, we areplanning now for a number of new potential risks. The guide aims toshare our opinion of the areas where we think we and the rest ofthe industry need to be focusing attention. The research behind itforms part of our ongoing efforts to level out the sharpundulations of the pricing cycle."
For further information, please contact:
Debbie Wells at Staniforth on 0161 274 0100 or David Ross atNorwich Union on 08703 66 68 65/07786 526350.
Notes to editors
Norwich Union Insurance
- Norwich Union is the UK's largest insurer with a market shareof around 14 per cent
- With a focus on insurance for individuals and smallbusinesses, Norwich Union insures:
- one in five households
- one in seven motor vehicles
- more than 800,000 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 and a selection of imagesare available on the Aviva internet press centre at www.aviva.com/media.
- An ISDN facility is available for studio quality broadcast.Call the press office on 08703 66 68 68
- For all life & pensions media enquiries 08703 66 6873
- Members of the General Insurance Standards Council
- Members of the Aviva group