Your article on Norwich Union’s joint venture with HSBC stated that HSBC Insurance’s growth targets would be met by launching a price war (News, 17 May). I would reassure the market that this is not our intention.
HSBC has historically punched below its weight in insurance, which means there is a terrific opportunity to aggressively grow the business by targeting its 10 million-plus customer base.
Today’s marketplace is all about offering great value. We define that as a broad range of insurance products created specifically for HSBC customers, and supported by quality customer service. The joint venture will also have the weight of significant marketing investment behind it.
We strongly believe that HSBC insurance can become a top 10 UK player by combining HSBC’s distribution network and Norwich Union’s underwriting and customer management capabilities – not, as reported, by the creation of a price war.