Price War

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Added - 20/05/2007

With HSBC making it plain they want to become a top ten UK insurer there are talks of the move sparking a price war in the general insurance market following the news they will be joining forces with Norwich Union.

This comes less than twelve months after it was reported that Norwich Union were to make a conceited effort to raise premium levels forcing the underdogs to follow suit. This theory does however appear to have been slightly scuppered by the fact the insurance aggregators market has exploded offering the general consumer the ability to navigate the entire market rates from their own personal computers, which essentially places Norwich Union in an extremely vulnerable position.

The HSBC move will certainly add to the weight Norwich Union have to influence market rates however the issue of a price war to reduce insurance premium rates seems the more logical outcome.

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