Insurance giant Aviva is consolidating its non-life insurance business in an effort to simplify its insurance underwriting business. The new entity, Aviva Insurance Limited, is being created in preparation for Solvency II, while its specialist London Market business will be merged into the Ocean Marine Insurance Company Limited.
A spokesperson from Aviva said the latest move was triggered by Solvency II requirements, since every insurance company would need to hold greater capital reserves once the new norms become effective.
The general insurance underwriters set to be affected are Aviva UK, Aviva Insurance, Aviva International, London & Edinburgh, CGU Underwriting, Hamilton, Ocean Marine and World Auxiliary.
No with-profit life companies are involved and all CGU companies involved are general insurance ones.
All the above mentioned underwriters have made an application to the Royal Courts of Justice under Part VII of the Financial Services and Markets Act 2000 seeking an order to sanction an insurance business transfer scheme, a legal notice by Aviva revealed.
“These changes will help us simplify our legal and governance structure and help us to comply with new European insurance regulation due in 2013,” the Aviva spokesperson said.
The consumers of the group companies will not be affected at all, claimed the spokesperson adding that from an adviser’s perspective, only the underwriter’s name at the bottom of the page will change to Aviva Insurance.
“As part of this, we are contacting our customers to reassure them that their policy cover, the way we handle their policy and any claim they make is not affected by the proposed transfer,” said the spokesperson adding: “this communication also advises policyholders how they can raise questions, and register any objections they may have with the proposed transfer.”