Capita Insurance Services is planning to expand products available over Abbey National's branch network.

This move is the next phase of development in Capita's insurance outsourcing contract to deliver Abbey National's general insurance products.

Capita business director Bill Paton said the branches would be able to offer mortgage, household and buildings insurance underwritten by Norwich Union. These products would be available by July next year

This follows the announcement that Capita has launched the second phase of its outsourcing contract. It has extended the online quote-and-buy facility, which allows customers to select their insurer of choice from a panel of seven providers.

Under phase two, Capita has extended this facility to motor insurance as well as to the Abbey National telesales unit in Liverpool. A panel of insurers has been established that includes AXA, Groupama, Fortis, Equity Red Star, Link, Hastings Direct and MMA.

The insurance outsourcing contract, worth £330m over ten years, started in January 2001.

Under the first phase of the contract, Capita took over the administration of all active policies and initial registration of associated claims.

It also established an online quote-and-buy facility for household insurance at www.abbeynational. co.uk.

Paton confirmed that Capita was "talking to two or three other potential clients", like Abbey National.