The Co-operative Insurance Society (CIS), part of the UK mutual organisation Co-operative Financial Services (CFS), has agreed to distribute four Norwich Union products. Three will be distributed via CIS’s 2,200 financial advisers and one directly to its seven million customers.
“Norwich Union is rightly regarded as a quality and leading product provider, who combined with the strength of our existing product range and salesforce channel, will help deliver a truly compelling proposition for our customers,” says David Anderson, CFS Chief Executive.
CIS says the move will increase the range of products available to CFS’s customers, which already includes banking, general insurance and CIS life and savings products.
The announcement follows a comprehensive review of CIS’s life and savings business which considered the opportunities presented by the new de-polarisation rules and the need to provide a broader range of long-term products for both existing and future co-operative customers. CIS says the review considered how best to improve customer choice and value from its co-operative business model, using its nationwide network of financial advisers. The review is part of CIS’s wider modernisation programme, announced back in July 2004, which is realising significant benefits ahead of schedule.
NU will provide a Personal Pension, a Unit-linked Bond and Inheritance Tax Planning through CIS’s salesforce and a Guaranteed Acceptance Plan, which will be directly marketed to CFS’s customers. Their proposed appointment follows a selection process and work will now start on developing the products with a view to launching them in the early part of 2006.
“Norwich Union is proud to have been chosen by CIS to provide a range of additional life products for CIS customers,” says Gary Withers, Norwich Union Life Chief Executive. “CIS is a highly respected organisation and we are delighted to be working with them as they develop and evolve their new strategy.”
On CIS’s overall modernisation programme, David Anderson says that the organisation is now “a more dynamic and responsive insurer than it was 12 months ago and the changes occurring throughout our business are strengthening our co-operative appeal. We are developing a new savings and insurance business which will play a full part in the wider success of Co-operative Financial Services going forward.”
Co-operative Financial Services was formed to bring together The Co-operative Bank, Smile (an Internet bank) and the Co-operative Insurance Society (CIS) under common leadership.