Aviva 2006 Annual Report Download - page 31

Overview Business review Governance Financial statements Other information
Aviva plc
Annual Report and Accounts 2006 27
Our people have continued to perform with dedication throughout
this period of uncertainty and change. Our measure for the
percentage of people who are broadly satisfied to be working at
Norwich Union increased from 52% to 61%, whereas those who
believe in our leadership increased from 77% to 82%, against a
target of 75%.
Individual customer satisfaction improved throughout the year
with the percentage of customers who are either extremely or very
satisfied rising from 62% to 71%. Customer service complaints fell
by 40%. This is the result of improvements to our overall service
proposition, including the introduction of several successful “service
promises”. For example, following the redesign of our bond sales
process, we promised to process all new business within five days
and, by the end of 2006, we were achieving this in 99.8% of cases.
During 2006, we launched 18 new products, including our
innovative “simplified life insurance” product that is sold directly to
consumers. Products such as this will improve consumer accessibility
and address the widening protection gap. We introduced a Retail
Price Index Guarantee on with-profit bonds, resulting in 93% year-
on-year growth. We also expanded our fund offering, including the
launch of new equity funds, and built on our established property
funds, most recently through the introduction of a global property
fund managed by Morley.
Welaunched our “make sense of it” website, responding to
consumer demand for information that is simple to understand
and helps with the basics of investing. The website was received
positively,with over 200,000 hits in the first three days and we have
since added information on pensions and annuities. Our new IFA
fund centre has significantly enhanced the adviser experience
through the provision of online quotes and fund performance
charting tools.
We improved our Financial Adviser Service Awards rating to two
stars, reflecting our continued investment in improving service levels
for advisers. Independent research shows that over the year the
percentage of advisers who rate our service as excellent or good
has increased from 35% to 52%. Adviser service complaints are
down 53%, the lowest level for three years. This progress was
made alongside strong sales growth and the implementation of
required changes to our pension product set for Pension
Simplification (A-Day).
We delivered record total sales, including investment sales, up 31%
to £13,601 million (2005: £10,345 million).This result was driven
by strong sales of pensions, bonds and collective investments.
Our new business contribution rose 22% to £327 million (2005:
£269 million) largely driven by higher volumes, leading to a stable
margin for the full year at 2.9% (2005: 2.9%) demonstrating the
company’s focus on value and volume.
On a post cost of capital basis, our new business contribution
was £263 million (2005: £217 million) with a margin of 2.4%
(2005: 2.4%).
iNorwich Union
launches Simplified
Life Cover
We have launched a new-style life insurance product
that makes it faster and easier for customers and
advisers to take out life policies. The new product,
Simplified Life Cover,is available through Norwich
Union’s website and call centres. It uses a streamlined,
interactive system that can produce instant policy
quotations and acceptance offers. It will also tailor
policy premiums to reflect an individual’s circumstances.
We are hopeful that this straightforward system will
help to reduce the number of under-insured families
in the UK.
U
For more information on Norwich Union Life products
visit www.norwichunion.com/life
UK PVNBP
2004 2005 2006
£m
12,000
10,000
8,000
6,000
4,000
2,000
0