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from VNU Business Publications on Friday, December 20, 2002

100,000 Norwich Union policy holders affected An error caused partly by the computer systems of insurance company Norwich Union has left 100,000 of its customers owed £7m on their investments. During an upgrade of its unit-linked pricing systems in September this year, Norwich Union found that approximately three per cent of its three million policy holders were entitled to additional units to their funds.

Unit-linked pension, saving and investment policies going back to March 1999 have been affected.

The company, which is the UK arm of global insurance giant Aviva, is in the process of notifying customers. Units will be credited automatically or, where policies no longer exist, the shortfall will be paid by cheque.

Norwich Union would not comment on the specifics of the error, but admitted that it was a combination of people, processes and systems.

"The pricing of unit-linked funds is extremely complex and that is where the errors have come in," said a spokeswoman.

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