The AA is inviting bids to expand its travel insurance panel.

A spokeswoman said a tender process was underway and there were "three to four strong candidates". She said: "We know we've not been very competitive lately and we need to ensure we have a competitive range of products."

The AA's annual travel insurance is currently underwritten by Zurich Insurance and its single trip insurance by Fortis Insurance.

"We're not specifically seeking a single supplier, but are looking for what will make sense to the customer," she said.

The tender results will be announced by the end of the month.

Centrica is stepping up its cross-selling strategy with British Gas now selling the AA's home insurance.

British Gas hopes to sell 15,000 to 20,000 policies by the end of the year. "The insurance has not changed in any form and is a standard AA policy," a spokeswoman said. The cover will be sold under the British Gas brand.

It is also understood that Centrica's telecommunications company One.Tel is looking to offer insurance to customers in the future.

Centrica operates the AA, British Gas, Goldfish and One.Tel and the spokeswoman said cross-selling was central to its strategy. "Centrica has 18 million relationships through British Gas and 12 million through the AA's breakdown service so there is huge potential to market."