Insurer's commercial clients to benefit from 21-day renewals
NIG has pledged to treat all commercial clients as retail customers, a decision which will require it to meet more onerous FSA requirements.
A spokeswoman for the insurer said it had taken the decision due to the difficulty in accurately identifying every retail policy.
She said NIG "could have been faced with a situation where it would be dealing with two completely different sets of requirements, that are not in the best interests of the customers or a practical option for us".
She added: "NIG has, therefore, taken the decision to treat, as far as reasonably possible, all commercial clients as retail."
FSA rules require retail customers to have a higher level of disclosure and protection than commercial customers.
The spokeswoman said that this meant NIG would provide policy summaries and 14-day cancellation provisions for all commercial customers.
"Additionally, we are working towards meeting the 21-day renewal notification for all business (in addition to liability classes) as per the ABI/Biba agreement."
Brokers welcomed the move. "It would suit us if it adopted this system. We'd welcome the timely renewals and additional renewal information which it would provide," one broker said.