Aviva 2005 Annual Report Download - page 12

Aviva plc 2005 Overview
Business segment: General insurance and health
Cracking down on
insurance fraud
We believe that people should be less tolerant
of fraud. Although it is sometimes described as a
“victimless crime”, insurance fraud costs the UK
economy an estimated £14 billion – £20 billion
each year, and the costs have to be recouped from
customers. Norwich Union continues to lobby actively
on this subject. In November 2005, we published our
Fraud Report, highlighting the impact of insurance
crime and making proposals for dealing with it,
including: establishing a UK commission on fraud;
publishing national fraud statistics and trends;
and adopting interim fraud targets for the police
and Crown Prosecution Service.
Operating profit
Our worldwide general insurance and health business reported an operating profit
of £1,551 million (2004: £1,259 million), an increase of 22%, reflecting our sustained
underwriting discipline, cost-cutting initiatives and innovative use of technology.
New distribution channels
In the UK, we have signed a deal with Barclays to become its sole provider of homeowner,
motor and travel insurance and extended our existing deal to be Asda’s sole provider of general
insurance. Our online sales have increased by over 200%, making Norwich Union Direct one
of the UK’s largest online insurance brands. In Canada, we extended our deal with Loblaws,
the country’s largest supermarket chain, with product launches in Quebec and Alberta.
In Ireland, our corporate partnership with Tesco moved from pilot stage into full roll-out.
* From continuing operations.
**On a UK GAAP basis.
† Restated for changes to IFRS and discretionary changes to longer-term investment return methodology.
Raising the bar on
customer service
Customer service is vital to the success of our business.
In 2005, 92% of UK customers were satisfied with the
sales service they received, and 83% with the handling
of their claim. While these scores represent a significant
achievement, we’re aiming higher in 2006 and are
looking to set industry-leading standards. To achieve
this we are implementing initiatives to understand,
direct from customers, what they see as key elements
of good service.
Customer call centre image to come
We are a leading
online insurer
Norwich Union Direct celebrated its 10th anniversary
as one of the UK’s leading direct insurers, with almost
four million policies now in force. The business
continues to grow, particularly online, where the
success of the “Quote Me Happy” advertising
campaign has contributed to a rapid expansion
in sales. This performance is reinforced by our
recent launch of RAC Direct Insurance.
95%
Combined operating ratio
+5%
Growth in net written premiums
>200%
Growth in online sales in the UK
General insurance
and health
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