Read Saxon East's view on the personal injury claims explosion and RBSI's decision to restructure its underwriting operations

Okay, are you listening, because I’m going to say this loud and clear. NIG is NOT for sale prior to the planned flotation in 2013.

I could say that until I’m blue in the face. And so could Royal Bank of Scotland Insurance, which owns the broker-only insurer.

But that won’t stop the market chatter.

After putting up the story about Direct Line, Churchill and NIG’s underwriting arms being rolled into UKI last night, I had a phone call from a broker. “I reckon this is all part of a plan to sell of NIG early,” he tells me.

In fact, the new arrangement probably makes it less likely that NIG will be hived off early. But my broker friend is not alone in thinking that NIG will soon be up for grabs.

Earlier this week, a senior banker questioned whether NIG should be part of the IPO story. The premise of his argument was clear: it’s a more coherent story for institutions if RBSI goes to float as a personal lines company, rather than have a much smaller commercial arm attached to it.

He also believed that there were “better owners” out there for NIG than the RBSI parent management.

Of course, RBSI would strongly disagree, and point to the benefits of diversification, a model followed by many insurers.

Whatever the outcome, the lesson here is that once people have an idea in their heads, it’s very difficult to shift.

Personal injury claims at your newsagents?

Want some free advice on how to make a quick buck out of insurers for your personal injury claim? Why not get it sorted at the post office or maybe the corner shop?

WH Smith’s revealed it will be offering legal services at various access points within the store.

It is teaming up with solicitors to offer legal help with wills and conveyancing. But it surely can’t be long before personal injury, employers’ liability and public liability claims are negotiated at high street stores too.

That’s the kind of society that insurers are dreading, but it could be where we are heading.

All this is possible because of the Tesco Law – which opens up legal access to customers – coming into force in October.

Could this be another ticking time bomb for insurers?

Saxon East, assistant editor, news

saxon.east@insurancetimes.co.uk

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