NU Partner HSBC

by Stewart Douglas

Story link: NU Partner HSBC

Insurance group Norwich Union have today announced a strategic partnership with HSBC Bank which will see the group underwrite the Bank and its subsidiaries’ creditor liabilities as well as providing underwriting to several of its independent insurance policies.

The mainstream bank, with 1 in 5 banking customers on its books, will now draw on Norwich Union to provide certain of its insurance underwriting agreements, as well as underwriting losses arising from its creditor business in its main bank and other subsidiary divisions.

The move will see Norwich Union provide insurance underwriting to the greater than 10 million UK customer base at the banking group, with a view to generating gross revenues through premium sales in excess of £1.5 billion over into the first two years of the next decade.

The news today sees the two firms join together in some strategic capacity after years of speculation and talk of a joint venture organisation that never in actuality came to fruition through the cross provision of services, and the trade agreement formed with the bank for mutual commercial benefit.

The arrangement is designed to last for five years initially, with an option of expansion beyond that period depending on the development of the relationship and commercial viability at that point.

Speaking today on the arrangement, Norwich Union executive Igal Mayer suggested that the move would be a crucial development for both companies, with a view to strengthening overall profitability for the longer term.

He also implied that the long tie of loyalty between the two companies would provide the ideal platform for development of the Norwich Union underwriting involvement.

The main Norwich Union involvement from a client perspective will relate to underwriting in payment protection plans as well as its successful home and travel insurance services offered to its customer base.