Allianz Cornhill is to launch a mid-net worth product run by third party administrator Home & Legacy.
In what is thought to be the first deal of its kind for Allianz Cornhill, the insurer will use a specialist wholesale broker to run the policy.
Allianz Cornhill director of underwriting and operations Andy Beddall said: "It is an area where we don't have the expertise or the infrastructure.
"Home & Legacy has the knowledge to select underwriting risks better than a main line underwriter."
The new policy will be available through over 4,000 brokers in both the Allianz Cornhill and Home & Legacy networks from 3 November. The companies are hoping to generate a gross written premium of around £2m in the first year.
Beddall said: "To justify setting up our own operation we would have to be looking at a gross written premium of £50m plus per year.
"It is much more economical to build on an existing infrastructure."
The product will cover buildings, contents, fine art and annual travel, offering 20% to 30% commission depending on volume and performance. Home & Legacy will run every aspect of the policy, liaising with brokers and customers on sales, renewals and claims.
Home & Legacy managing director Gary Burke said: "Business deals like this prove that outsourcing is a viable business decision. We believe that mid-net worth is going to grow enormously in the next few years."
The deal moves the company closer to its aim of increasing its business from £20m to £50m in three years and should be the first of a number of similar ventures to be announced over the next few months.
It comes a month after Home & Legacy raised £20m by selling 35% of the company to Sand Aire Private Equity.
Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
