Following a 40% price hike on guaranteed critical illness (CI) premiums in December last year, Norwi...
Following a 40% price hike on guaranteed critical illness (CI) premiums in December last year, Norwich Union (NU) has now reduced guaranteed rates on some of its plans.
Prices for term assurance with CI have been cut by 19% and mortgage life cover with CI has been cut by 13%. No reductions have been made on its standalone policies, but NU claims they are likely to fall by the end of April.
NU was the first UK insurer to increase guaranteed premiums and has since found other insurers have taken less dramatic cuts, making NU's rates seem less competitive.
Keith Simm, mortgage and protection marketing manager at NU, admitted the cuts could be temporary, depending on where the market goes.
'This is a competitive market where there will be turbulence and price movements both up and down during the rest of the year.'
