From Norwich Union to Aviva: A Story of Change

Norwich Union, a name that's been synonymous with insurance for decades, has undergone a significant transformation over the years. In 2000, the company was acquired by CGU, a UK-based insurance group, and the name was eventually changed to Aviva in 2006.

This change marked a new era for the company, which had been founded in 1797 as the Norwich Union Fire Insurance Society. The acquisition by CGU brought in new resources and expertise, allowing Norwich Union to expand its services and reach a wider customer base.

The name change to Aviva was a deliberate move to create a more unified brand identity across the company's various operations. Aviva is now one of the largest insurance groups in the world, with operations in 16 countries and a global workforce of over 30,000 people.

Norwich Union was founded in 1797 by Thomas Bignold as a mutual society for insurance against fire loss. It was initially known as the Norwich Union Society for the Insurance of Houses, Stock and Merchandise from Fire.

The company operated its own fire brigades to protect policyholders' buildings, marked with "fire insurance marks". This was a common practice among insurance companies against fire loss.

In 1808, Thomas Bignold established a second mutual, the Norwich Union Life Insurance Society.

Norwich Union was founded in 1797 in Norwich by Thomas Bignold, a 36-year-old merchant and banker.

Thomas Bignold formed the "Norwich Union Society for the Insurance of Houses, Stock and Merchandise from Fire", a mutual society owned by the policyholders who received a share of the profits.

In 1808, Thomas Bignold established a second mutual, the Norwich Union Life Insurance Society.

The Fire Society demutualised in 1821 when it absorbed the Norwich General Assurance Company, marking a significant change for the company.

As the years went by, Norwich Union continued to grow and expand its services. In 1907, the company introduced its first endowment policy, which allowed policyholders to save and invest for the future.

The company's growth was largely driven by its innovative products and services. Norwich Union was the first company to offer a guaranteed annuity, which provided a regular income to policyholders in retirement.

In 1923, Norwich Union launched its first motor insurance policy, which was a major milestone in the company's history. This move marked a significant shift towards providing insurance services for everyday life.

The 1930s saw Norwich Union expand its operations into new areas, including the introduction of a new type of life insurance policy that provided a lump sum payment to policyholders in the event of their death.

Norwich Union's customer service was put to the test when they discovered an overcharging error dating back to 2001, and they agreed to compensate their clients with a cheque for £300 each.

The government's 1% cap on charges played a significant role in this decision, with the final amount of compensation expected to exceed £11 million.

Norwich Union was well known in Canada for its direct marketing of life insurance products, often promoted through catchy television advertisements.

One of their most famous ads began with the phrase, "It's Patrick! He took out life insurance", but following the Norwich/CGU merger, this unit was sold to American International Group and renamed AIG Assurance, which dropped the "Patrick" ads.

The unit was then resold to Bank of Montreal in 2009 and is now known as BMO Insurance.

Norwich Union's leadership was marked by a strong focus on customer needs, with the company investing heavily in its customer service operations.

This commitment to customer service was evident in the company's decision to introduce a dedicated customer service team, which was responsible for handling customer queries and resolving issues.

The company's leadership also recognized the importance of innovation in driving growth and transformation, with a significant investment in new technologies and business processes.

By adopting a customer-centric approach and embracing innovation, Norwich Union was able to stay ahead of the competition and achieve significant growth in the market.

Leadership is not a solo activity, but rather a team effort that requires collaboration and communication. As we've seen in the article, effective leaders recognize the value of empowering others to take on leadership roles.

A key characteristic of successful leaders is their ability to delegate tasks and responsibilities to others. This allows them to focus on high-level decision-making and strategic planning, while also developing the skills and confidence of their team members.

Research has shown that employees who are given more autonomy and decision-making authority tend to be more engaged and motivated in their work. In fact, a study found that employees who were given more autonomy reported a 23% increase in job satisfaction.

Effective leaders also recognize the importance of providing regular feedback and coaching to their team members. This helps to identify areas for improvement and develop the skills and knowledge needed to succeed in their roles.

As we've seen in the article, leaders who are able to adapt and adjust their leadership style to suit the needs of their team are more likely to achieve success. This may involve shifting from a more autocratic to a more collaborative leadership style, or vice versa.

The benefits of promoting from within are numerous, including increased job satisfaction, reduced turnover rates, and improved morale. In fact, a study found that employees who were promoted from within reported a 35% increase in job satisfaction.

Leaders who are able to empower others to take on leadership roles are more likely to achieve long-term success and create a sustainable leadership pipeline.

Leadership and Culture Change is a crucial aspect of transformation. It requires a deep understanding of the organization's culture and the ability to adapt to changing circumstances.

A culture of innovation can be fostered by encouraging experimentation and learning from failures. This approach was taken by Google, which has a "20% time" policy where employees are allowed to dedicate 20% of their work time to side projects.

Effective leaders must be able to inspire and motivate their teams to drive cultural change. They need to be able to communicate a clear vision and strategy that resonates with their employees.

According to McKinsey, 70% of transformations fail because of a lack of cultural alignment. This highlights the importance of understanding and addressing the underlying cultural dynamics within an organization.

Leaders must be willing to confront and challenge existing power dynamics and structures that may be hindering progress. This requires a high degree of self-awareness and emotional intelligence.

A culture of continuous learning and improvement is essential for driving transformation. This involves creating a safe and supportive environment where employees feel encouraged to share their ideas and feedback.

Aviva's Norwich Union operation in the UK underwent a significant cultural transformation after a series of mergers from 1998 to 2000.

The company's executive team announced a new corporate philosophy, "to be a service provider with insurance at our core and care at our heart", but employees were initially skeptical.

The tension between short-term gains in efficiencies and longer-term approaches to the business was a major challenge for the executive team.

The company's top management priority was to restore profits after the mergers, but behind the scenes, a whole new corporate culture was becoming increasingly imperative.

The executive team's announcement of the new corporate philosophy was greeted with complete disbelief by employees.

The company ultimately successfully implemented the new philosophy, but it required significant change to the organisational culture.

Here are the key steps taken by Aviva to realign its culture with its strategy:

Aviva's Norwich Union operation made a significant decision to slash its final policy payout by 10% in 2008, affecting 2.4 million policyholders. This move was made to reflect the market movements over the past nine months.

The company's with-profit fund had lost 7.3% of its value for the six months ending June 30. Despite this, the fund had performed well against average savings accounts and the FTSE All-Share over the short, medium, and long term.

The changes came into effect on September 1, 2008, and were applied to all four of Norwich Union's with-profit funds, including its two largest NULAP and CGNU.

2.4 million policyholders of Norwich Union will be affected by the cut in final policy payout.

The cut is a 10 per cent reduction, applied to all four of Norwich Union's with-profit funds.

Norwich Union's chief actuary, John Lister, said the company is taking responsible action to reflect market movements over the past nine months.

The changes came into effect on 1 September, after the CGNU fund lost 7.3 per cent of its value for the six months ending 30 June.

Policyholders have already received a £2.3 billion special bonus from the inherited estate.

The cut is aimed at preventing those who leave the fund from taking more than their fair share at the expense of those who remain.

Aviva, the UK's largest insurer, has decided to drop the Norwich Union brand name after over 200 years of service to British households. This move is part of a larger plan to unify the group under a single brand across the globe.

The Norwich Union brand has a rich history, dating back to 1797 in the Norfolk city. Andrew Moss, Aviva's chief executive, has signed the death warrant for the brand as part of the rebranding exercise.

The rebranding exercise will take place over the next two years in the UK, Poland, and Ireland. Aviva will also be dropping the Hibernian brand for Ireland and the Commercial Union name in Poland.

Andrew Moss believes that the move will improve sales opportunities in the long run, despite concerns that customers may abandon the brand. He's confident that the Aviva name will become more recognizable than Norwich Union over time.

Aviva remains committed to the City of Norwich, where the insurer is the largest local private sector employer. Some 6,700 staff are based in Norwich, which houses call centre operations and serves as the headquarters for the UK general insurance operations.