Norwich Union Life today announced that it has reached an agreement to outsource the administration of almost three million of its existing life and pension policies to Swiss Re.
- Customers will remain actively managed by Norwich Union
- 220 product systems to be de-commissioned
- 1,000 employees to be transferred under TUPE
Norwich Union Life today announced that it has reached an agreement to outsource the administration of almost three million of its existing life and pension policies to Swiss Re. This is a significant part of Norwich Union’s existing business which is made up of policies from different companies as a result of mergers and acquisitions.
Norwich Union will continue to actively manage the customers, their policies and their funds, with Swiss Re taking on the responsibility for administration. Customers will see no changes to their terms and conditions, the premiums they pay or the benefits they receive.
This innovative agreement is a major step forward for Norwich Union as the company seeks to further improve customer service and reduce the costs and complexities of its legacy systems. Norwich Union has made significant progress in improving service levels in the financial adviser community and today’s announcement will enable it to focus its attention on further improving customer satisfaction levels.
The administration of the policies will be migrated across to Swiss Re’s IT platform, enabling Norwich Union to decommission 220 of its 550 product systems. The approximately 1,000 employees who currently administer these policies at locations in Norwich and Stevenage will be transferred under TUPE (Transfer of Undertakings (Protection of Employment Regulations) 2006) to Swiss Re.
Norwich Union has chosen to work with Swiss Re due to its excellent systems capability, its experience in the life and pensions sector and its strict focus on customer service. In addition, Norwich Union already has a successful business relationship with Swiss Re as one of the company’s major reinsurance partners.
Mark Hodges, chief executive Norwich Union Life, said: “This is a major strategic development for Norwich Union. We have set out a clear plan to materially reduce the complexity of our life and pensions operations. This innovative agreement will enable us to improve customer satisfaction levels further and make us a much more efficient organisation. Our distribution, product and brand strength coupled with a leaner organisation will help deliver future growth.
“We are confident this is the right solution for this existing business. These customers and their funds will remain actively managed by Norwich Union. We firmly believe we are the best people to manage our customers and their money.
“We are absolutely committed to transparent and open communications and consultation with the employees involved throughout the transfer process.”
Weldon Wilson, member of Swiss Re’s executive board, said: “Norwich Union selected Swiss Re based on our long-established reputation for excellent policyholder service, our proven administration platform and our long-term commitment to the insurance industry. This agreement adds significant strength and depth to a key client relationship."
The transfer of administration and employees to Swiss Re will take place in October 2007 with the migration of policies completed in early 2009.
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Press office contacts:
Norwich Union 01603 684225/684916/683618
Louise Zucchi 07800 699664
James Evans 07800 699525
Notes to Editors:
About Norwich Union
Norwich Union is the UK’s largest insurer. It is a leading provider of life, pensions and investment products and one of the largest financial adviser (FA) providers. FAs provide over 70% of the company's long-term savings business in the UK.
Norwich Union is the UK’s largest general insurer with a market share of around 14%, with a focus on insurance for individuals and small businesses.
Norwich Union’s news releases and a selection of images are available from Aviva's internet press centre at www.aviva.com/media
About Swiss Re
Swiss Re is the world’s leading and most diversified global reinsurer. The company operates through offices in more than 25 countries. Founded in Zurich, Switzerland, in 1863, Swiss Re offers financial services products that enable risk-taking essential to enterprise and progress. The company’s traditional reinsurance products and related services for property and casualty, as well as the life and health business are complemented by insurance-based corporate finance solutions and supplementary services for comprehensive risk management. Swiss Re is rated “AA-“ by Standard & Poor’s, “Aa2” by Moody’s and “A+” by A.M. Best.