Norwich Union (NU) has begun an “exhaustive review” of its pricing strategy to usher in a common pricing policy for brokers and direct customers.
Insurance Times was inundated with letters from brokers when it highlighted the issue of so-called dual-pricing by insurers last March.
The Office of Fair Trading investigated Norwich Union and other insurers for possible breach of the Competition Act but found no case to answer.
The insurer said it intended to iron out exceptional price differentials in the quotes it offers to brokers, as compared to its other distribution channels, including Norwich Union Direct.
A spokeswoman for NU said the review had been prompted following approaches from brokers over the past two years.
It will be carried out by NU's
general insurance pricing team and will involve analysing more than
seven million pricing cases on its database. The review is due to be completed before 2002.
