Norwich Union has written to all its brokers urging them to back the industry’s drive to call a halt to the boom-bust volatility of the underwriting cycle.
John Seaton, underwriting and pricing director at Norwich Union, commented: "Breaking the pattern of constantly fluctuating premiums is in everyone’s best interest – intermediaries and their clients, as well as insurers. It is up to all of us in the industry to end the volatile cycle of highs and lows. Insurers need to improve the accuracy of premium planning. But we also need our intermediary partners to support us in the pursuit of stability. Particularly in the commercial arena, chasing the lowest premiums for clients may well gain brokers short-term popularity but unsustainable prices will inevitably lead to over-inflated hikes in the future."
The company has also produced a guide to future risk, highlighting effective forward planning for emerging risks as one of the cornerstones of accurate premium calculation.
From obesity to nanotechnology, electro magnetic fields to cyber terrorism, the A to Z of risk booklet looks at the raft of new types of risk linked to socio-demographic, economic and political change in the UK.
John Seaton added: "At Norwich Union, we are planning now for a number of new potential risks. The guide aims to share our opinion of the areas where we think we and the rest of the industry need to be focusing attention. The research behind it forms part of our ongoing efforts to level out the sharp undulations of the pricing cycle."
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For further information, please contact:
Debbie Wells at Staniforth on 0161 274 0100 or David Ross at Norwich Union on 08703 66 68 65/07786 526350.
Download the A to Z of risk booklet PDF (0.4Mb)
Notes to editors
Norwich Union Insurance
- Norwich Union is the UK's largest insurer with a market share of around 14 per cent
- With a focus on insurance for individuals and small businesses, 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 of distribution channels including brokers, corporate partners such as banks and building societies and Norwich Union Direct.
- Norwich Union’s news releases and a selection of images are 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 68 73
- Members of the General Insurance Standards Council
- Members of the Aviva group