Door-to-door specialist Britannic Assurance is to sell its general insurance products over the telephone by linking up with Cornhill Direct.
Under the deal, Britannic's existing 130,000 home policies, worth £13 million in premium income, will be transferred to the new venture, to be called Britannic Direct, from May.
But the company will be hoping to tempt far more of its 1.5m customers to buy household and motor insurance via the telephone.
It is also to restructure its branch administration to a centralised customer support service. This will cost about 300 administration jobs from 116 branches and another 50 from its head office in Worcestershire.
The collaboration between the Britannic and Cornhill followed a competitive tendering exercise, prompted by Britannic's earlier decision that the best way to grow its general business was in partnership with a direct insurer.
Under the terms of the new deal, Cornhill Direct, owned by German insurer Allianz, will be responsible for sales, underwriting, servicing renewals and claims from its Bristol headquarters.
Household insurance will be underwritten on a 50:50 basis with Cornhill underwriting the whole motor risk.
Cornhill general manager Dave Bishop said: "What attracted us to Britannic was the strength of the brand allied to its customer contact strategy which will allow us to offer quotations just prior to their existing renewal date."
He added that the joint contact plans would also deliver a low marketing cost per policy.
Bill Haynes, Britannic's marketing director, said: "Cornhill was successful because it demonstrated a strong customer service capability and an ability to grow our general insurance business."
The initial product range will focus on motor and household products only although other general insurance products are likely to be added in the future.
Talks between Britannic and United Assurance aimed at a possible merger were called off last November although Britannic left itself free to table a bid in the future.
