Aviva and Willis Networks deal ends

Aviva will no longer participate on Willis Networks’ insurer panel after deciding against renewing an existing agreement with the broker.

It is the second major network deal that Aviva has ended in under a year. Last June, the insurer terminated its partner insurer status with Towergate-owned Broker Network because it contended it did not make enough money from the arrangement.

The existing network deal between Willis and Aviva will end on 31 December but the two firms will retain a relationship in other areas of business, including personal and corporate.

Insurance Times understands Willis’s members place about £70m in premiums with Aviva, which is the network’s largest book of business.

A source close to Willis said the renewal talks broke down because the deal being offered by Aviva was “not acceptable” to the network.

Aviva is placing greater emphasis on its branch network and now prefers to have direct relationships with brokers after questioning the value of the network proposition. Other insurers are also understood to be reviewing their network deals.

Aviva director of broker distribution Phil Bayles said: “Regional broker relationships are at the heart of Aviva’s distribution strategy and that is why we continue to invest in our significant local sales and trading capability to support and deepen our relationships with all our brokers. 

“We look forward to continuing our strong relationship with Willis across personal, corporate and speciality lines.”

Willis Networks is made up of the Willis Commercial Network, for larger independent brokers, and Willis N2, for smaller provincial and start-up brokers.

The networks have 142 members controlling a combined £500m of gross written premium.

Willis UK president Brendan McCafferty said: “We want to thank Aviva for their support over many years, but we are confident that this is the right decision for our members and for Aviva.

“Willis Networks is focused on working with insurers that are strategically aligned with our distribution and service capabilities, and that partner with us in delivering bespoke products to our members and their customers.”