Insurance group Norwich Union have signed a strategic partnership with HSBC Bank that will see Norwich Union underwrite many HSBC insurance policies. The bank, with 1 in 5 banking customers on its books, will now draw on Norwich Union to provide certain of its insurance underwriting agreements.
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.
The main Norwich Union involvement will relate to underwriting payment protection plans as well as travel insurance services offered to its customer base.
As part of the deal, Norwich Union has bought two insurance companies from HSBC; Hamilton Insurance Company and Hamilton Life Assurance Company. As there is no logical link for customers between the HSBC and Hamilton names, there seems no point in keeping those names; but until after a transition period, we will not know what insurer and/ or brand names the various insurances will be written.
Although Hamilton mainly writes via the HSBC, they do have some schemes for brokers on private medical and life- whether brokers will be looking for new underwriters or not is undecided.