UK: Norwich Union reviews pre-funded long-term care

Norwich Union has undertaken a review of the long-term care market and, as a result, has decided to withdraw from the pre-funded long-term care sector and focus on immediate needs. The Future Assured product will no longer be available after 5 January 2004.

The immediate needs long-term care market has shown strong growth over recent years (average of 30% increase per year 1999 to 2002*) as opposed to the pre-funded market which has been in decline due to consumers having other financial priorities.

Dean Critchfield, retirement market manager, said: "As a result of the current market conditions for long-term care, we believe now is the right time to focus on the immediate needs sector where we see the prospect of stronger growth. We do not see the outlook for the pre-funded market improving in the immediate future."

Applications for the Future Assured received before close of business on 30th January 2004 will be accepted provided that they are accompanied by a new business illustration. All pipeline applications must be underwritten and current on or before 1st April 2004.

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Press office contacts:
James Evans 08703 66 68 78 Out of hours 07790 487105
Lorna Wiltshire 08703 66 68 78 Out of hours 07788 471849
Louise Goffee 08703 66 68 70 Out of hours 07810 057362
David Gwyer 08703 66 68 71 Out of hours 07800 699508

Notes to Editors

* Source ABI 2003

• Norwich Union is the UK’s largest insurer. It is a leading provider of life, pensions and investment products and one of the leading IFA providers. IFAs provide around 70% of the company’s long-term savings business.
• Norwich Union has strategic alliances with building societies and other leading UK brand names including Tesco Personal Finance and The Royal Bank of Scotland Group.
• Norwich Union’s news releases and a selection of images are available from Aviva's internet press centre at www.aviva.com/media.