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Nationwide seals £70m deals

Nationwide Accident Repair Services has won contracts with Norwich Union and Zenith Insurance, estimated to be worth £70 million.

The three-year deal with Norwich Union, worth an estimated £20 million a year, follows on from a previous contract. It will allow work to be directed to the appropriate repair site from the initial phone call to Norwich Union’s claims call centre.

In March, Nationwide sold two of its sites to Solus, Norwich Union’s own bodyshop chain. The move, which involved bodyshops at Cumbernauld and Kidderminster, was expected to guarantee Nationwide substantial repair volumes from the insurer. It now has that deal.

Under the new contract, Norwich Union will supply significantly more repair jobs than in previous years across the north, east and south west of England, central Scotland and Wales.

The move reflects Norwich Union’s aim to consolidate the number of its accident repair suppliers in order to become more efficient and enhance customer service.

It will also give the insurer better control of the claims process and the chance to obtain volume discounts.

Michael Wilmshurst, chief executive of Nationwide Accident Repair Services, said: “Not only does the contract enable us to drive operational efficiencies but also, in being able to move work within our network, it allows us to service our customer’s needs effectively, maintaining our market leading standards of service.”

Nationwide has also agreed a two-year contract with Zenith Insurance worth £5 million per year.

Under the Zenith contract, Nationwide’s accident management subsidiary Nationwide Network Services will be the first point of contact for Zenith’s customers following a vehicle accident.

Zenith will arrange the engineering or repair services. However, Nationwide anticipates undertaking the majority of repair services at its own bodyshops.

The relationship was built through Zenith’s sister company Link, with which Nationwide holds a contract.

The deal is expected to account for 3.3% of Nationwide’s turnover.

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