Royal & SunAlliance is to offer cover to Zurich Life’s group risk clients following Zurich’s decision to withdraw from this market.
Existing business will continue to be administered by Zurich Life, but clients will be provided with a switch facility to Royal & SunAlliance on a fast track basis.
The deal enables Royal & SunAlliance to capture 19.6 per cent of the group risk market and follows the company’s move last year to exit from tied sales distribution and increase focus on IFAs. Royal & SunAlliance offers group life, income protection and critical illness employee benefit schemes through IFAs.
New annual sales of R&SA’s group life, income protection and critical illness products have increased by 45 per cent over two years from £23.4m in 1997 to £34m in 1999. Total premium income in 1999 was £148.9m.