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Norwich Union has signed a deal with IBM and Orange UK to provide the technology and telecommunications for its revolutionary Pay As You Drive insurance programme.


The UKs largest general insurers innovative venture will see data collected from a telematic device in a customers car and an insurance premium calculated based on when, where and how often the car is used.

Based on its expertise in the automotive and insurance industries as well as in telematics technology, IBM has been chosen by Norwich Union to provide the telematic architecture, hardware and software, and device specifications, to support this innovative approach to insurance.

Orange, the UKs most popular mobile communications company, will supply the robust and highly secure telecommunications network infrastructure. The Orange network will transmit data from vehicles to Norwich Union.

Robert Ledger, Pay As You Drive programme director at Norwich Union, said: Behind the scenes, we have taken the time to choose the right partners. This is a major research and development programme with Norwich Union customers, and it is essential we have leading experts in these industries with proven ability to deliver as well as maintain superior customer focus.

Both IBM and Orange have shown the pedigree and vision to work with us on this exciting venture.

Bill Pieroni, general manager for IBM Global Insurance Industry, said: Telematics technology is already proving its tremendous value to drivers and passengers with added safety features, new services, and entertainment. Now we want to help determine whether this on-demand approach to insurance coupled with IBM services and infrastructure can benefit the insurance industry and motorists with more accurate insurance premiums based on actual vehicle usage.

This is a clear example of how IBM can bring together its world-leading technology expertise to help new partnerships across different industries forge pioneering product and service innovation.

Telematic technology is already proving its tremendous value to drivers and passengers with added safety features, new services and entertainment and a variety of other benefits. Now we want to help determine whether this technology can be used to benefit motorists with more accurate insurance rates based on actual use of their cars.

Neil Laidler, head of corporate customer development, Orange Business Solutions, added: Orange is committed to delivering innovative services that simplistically enhance peoples lives. We are delighted to bring what we have learnt from developing pay-as-you-talk solutions to help Norwich Union deliver a revolutionary insurance service to its customers.

Norwich Union has an exclusive agreement covering the UK and Europe with pioneer US insurer Progressive to use data collected via telematic technology and the companys unique pricing method to calculate premiums. This heralds a major breakthrough in the calculation of more accurate motor insurance premiums, giving the customer greater control, flexibility and choice.

Pay As You Drive is due to be piloted this year with 5,000 volunteer motorists. Any customers interested in taking part in the pilot, which will last up to two years, can register at
http://www.norwichunion.com or email payasyoudrive@norwich-union.co.uk


-Ends-

For further information contact Jenny Chapman at Norwich Union on 08703 66 68 64/07775 822642, or Bill Mew at IBM on 020 7207 5769, or Sally Quigg at Orange on 020 7984 2000

Notes to editors

Norwich Union Insurance is the UK's largest insurer with a market share of around 16 per cent and is more than 1.5 times the size of its nearest rival. It is also the largest personal lines insurer.

It has a focus on insurance for individuals and small businesses. It insures:

one in five households

one in five motor vehicles

more than 700,000 businesses

Norwich Union products are available through a variety of distribution channels including brokers, corporate partners such as banks and building societies and Norwich Union Direct.

Norwich Unions news releases are available on the Aviva plc website at http://www.aviva.com
A selection of images is available from the Norwich Union Newscast site at
http://www.newscast.co.uk An ISDN facility is available for studio quality broadcasts. Call the press office on 08703 66 68 68.

For all life and pension media enquiries 08703 66 68 73.
For all other media enquiries 08703 66 68 68.

* Progressive (NYSE:PGR), with headquarters in Mayfield Village, Ohio, is the fourth largest motor insurance company in the US. In business since 1937, the company provides all drivers in 48 US states and the District of Columbia with competitive rates and 24 hour, in-person and online services.
European patent application no.s 97904096.1 and 01303501.9. Licensed from Progressive Casualty Insurance Company, USA.

About IBM

IBM is the world's largest information technology company, with 80 years of leadership in helping businesses innovate. IBM offers a broad range of capabilities - consulting, IT services, hardware, software, research and financing -- to help companies of all sizes realise the full value of information technology.

IBM works with specialist IBM Business Partners to deliver an advanced, flexible and reliable portfolio of Telematics Solutions. Addressing issues such as safety, privacy, convenience and connectivity, our in-vehicle information systems and solutions enable our customers to deliver hands-free and eyes-free technology as part of developing invaluable and long-term relationships with their customers. Through its specialist industry consulting, services and solutions, IBM helps its customers, including insurers, to achieve economies of scope and scale, reduce their capital costs, cut expenses and offer new products and services faster.

To learn more please visit ibm.com


About Orange

At the end of December 2002, Orange UK had over 13.3 million active customers, more than any other UK network, making it the UKs number one.

The fifth annual J.D. Power and Associates UK Mobile Customer Satisfaction Study published in May 2002 showed that Orange ranks as the number one telephone service for customer satisfaction in the contract sector in the UK. In September 2002 Orange UK won the Mobile Choice consumer award for Best Network; Mobile Choice said Orange received glowing accolades for every aspect of its service coverage, reliability, customer service and tariffs.

Orange UK provides high quality coverage to 99% of the UK population, and offers roaming to pay monthly customers on 287 networks in 127 countries and to pay as you go customers on 24 networks in 19 countries.

Orange, wirefree and any other Orange product or service referred to in this release are trademarks of Orange.

Information about Orange can be found on the Orange website at www.orange.co.uk and media information can be found at http://www.orange.com
For further information, call the Orange media centre on 020 7984 2000 or 07973 201911


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