Software specialist The Innovation Group's (TIG) shares plummeted nearly 30% in early trading today to less than 80p. They had recovered to 84p by lunchtime, but this still represents a fall of 22.4%.
Insurance Times reported today that Royal & SunAlliance (R&SA) had cancelled a deal with the software provider.
The insurance giant had been the first customer for TIG's claims management system, designed to trim costs and improve customer service.
However, R&SA pulled the plug after 20 months' investment in the system.
R&SA communications director Paul Atkinson said there was "nothing particularly wrong" with the TIG product, but the company wanted a single system to cover personal and commercial claims.
"Sometimes you have to make hard decisions. Unfortunately we've opted for an internal system," he said.
