Ken Wallace, Norwich Union's intermediary business director, stepped in to quash confusion about the insurer's UK business this week after announcing brokers would be offered sweeteners to switch to EDI automated transactions.

Press reports about CGNU's exit from the London market as well as the US and South Africa have triggered rumours that several UK portfolios would also be under the hammer.

But Wallace said it would be "business as usual" for the vast majority of UK brokers and intermediaries.

"Our business and our target market is very much general insurance business for the vast majority of UK risks.

"We are not writing global business, heavy liability risks or complex financial risks such as alternative risk transfer," he said.

The biggest misunderstanding has been over package and traders combined business. NU will continue to write property-led business for companies with up to £100m turnover or about a £100,000 premium.

But the insurer would not be writing liability-led risks with a small property element.

Wallace added that the insurer would continue to write standard commercial motor fleet business of any size for most areas, including haulage, although he admitted there had been no decision on coaches.

He added NU would continue with motor trade, saying: "We have put our rates up considerably and they appear to be carrying."

Yesterday, the insurer sent out hefty conversion manuals to its agency base which Wallace describes as "a wealth of information".

As part of the drive to promote full cycle EDI use for private motor, NU is offering brokers an extra £5 in commission for every case that they transfer across.

It will pay £8 to brokers who also transfer the motor breakdown policies to full-cycle EDI.

While the Norwich Union private motor book is electronically transacted, the CGU book of up to 200,000 policies is not.

Wallace is confident that the merger process is running smoothly. He said the insurer had responded to the broker feedback it gained from its roadshows.