A new insurance initiative aimed at health and fitness club members has been jeopardised following Norwich Union’s decision to withdraw its support for the product, according to the intermediary who planned the launch.
Intel Insurance Services, based in Buckinghamshire, has spent the last six months developing a members’ subscription insurance for gym members.
The product was to cost £15 a year, and would cover membership fees for up to 12 months in the event of injury, illness or unemployment.
Terry Grove, managing director of Intel Receivables, the holding company for Intel Insurance Services, said he was stunned by Norwich Union’s decision not to pursue the project.
“I can’t believe it. We have been to every health club in the country and just started to launch the product, and had a great deal of interest from major health club groups.
“We’ve sent out 60,000 leaflets and opened offices in Kings Lynn. It was to be the ideal solution – people could continue using the clubs if they had a long term illness or were unemployed– and the clubs saved the money from lapsed membership,” explained Grove.
Norwich Union said it had valid reasons for its decision. A spokesman said: “We were introduced to a potential business proposition which was deemed to be viable. That proposition has changed considerably over the past few months so that it no longer resembles the original plan.
“Norwich Union feel that the new proposition is not one it could support going forward. It should be noted that there are no policyholders currently attached to this scheme in any capacity.”
Intel Receivables says it is consulting its solicitors.