Industry
Norwich Union Life has become the latest insurer to announce that it is cutting some of its protection rates.
The provider decided to reduce its premium rates on term assurance products, with effect from 25 April, after "having taken a look at its position in relation to the rest of market."
It decreased rates for its term assurance without integrated guaranteed critical illness (CI), term assurance with integrated guaranteed CI, mortgage life assurance without integrated guaranteed CI and mortgage life assurance with integrated guaranteed CI.
The life office's move has heightened speculation that the market is undergoing a rate war. However, Neil Pine, mortgage and protection development manager at Norwich Union Life, denies the firm's decision had anything to do with other providers cutting their rates.
"We have taken this action to further improve our competitive position. However, we are looking at the market as a whole and are not really responding to our competitors' decisions to cut rates," he said.
Prudential also cut its rates for its decreasing life cover, life cover and life and CI cover on 18 April. Previously, Standard Life and Legal & General have both made several rate cut announcements.
