National Australia Bank has renewed its creditor insurance contract with Norwich Union less than a month after is announced the end of a commercial insurance contract with the same insurer.
Under the creditor insurance deal, Norwich Union will offer products to customers of the National’s four European Banks; the Clydesdale, Yorkshire, Northern and National Irish Banks.
Approximately 75,000 customers of all four banks currently take out Norwich Union creditor insurance per annum, said the National.
Under the new agreement, the National and Norwich Union have defined new training support and marketing initiatives, service level agreements as well as a relationship management structure, with the aim of growing the current customer base.
The deal will come into effect from September 2004, when the existing agreement ends.
Customers of the National’s four European banks can take out creditor insurance alongside home loans, credit card, fixed personal interest and variable loans.
The National announced on 21 May that it had awarded a commercial insurance contract to AXA. Norwich Union had previously held the contract.
Market sources indicated that the National’s book of commercial insurance currently has gross written premiums of over £15m.
In the past twelve months the National has launched a high net worth home insurance offering with Hiscox, an alliance with Legal & General to offer life assurance and protection, as well as an alliance with Junction to provide product and administration services for its home and motor insurance operations.
