The largest internet portal to specifically target the over-45 age group has launched its first product on the internet. claims its home insurance is at least 25% cheaper than its competitors because of the internet company's low costs and sizeable purchasing power.

The internet insurer forecasts the 45-plus age group will grow to be a massive market for insurance, comprising half the population of Europe in 20 years' time.

Director of, Simon Minshall, said: “Our business is built on providing our members with better deals.

“Home and contents insurance is our first priority and we will be launching further financial products in the coming weeks.”

Vavo has commissioned special research which shows its policy is the cheapest household policy for more than a quarter of UK postcodes and in the top three in more than 70% of cases.

The policy's features include a discount that rises with age, a flat rebuilding level of £400,000, and contents cover based on the number of bedrooms up to a maximum of five. In addition, all risks cover is provided for personal possessions away from the home.

The policy is underwritten by Folgate Insurance, which specialises in insurance for older people. was started last year with backing from GE Capital and Prudential.

It has more than 100 pages of interest to older people, including information on pensions reform, hobbies and leisure pursuits.