Legal & General will launch a range of discounted consumer goods for its household customers next week in an attempt to boost customer loyalty.

L&G managing director John Castagno said the company wanted to add value to customers in-between their normal contacts with the insurer, which are usually renewals and claims.

The Extra scheme will begin with a range of goods such as cameras, TVs and video and leisure equipment, plus discount holidays and house security products. It will expand to include restaurant discounts and cheap motor cars.

L&G has expanded its relationship with the companies it deals with for claims replacements for most of the goods covered. But research among its customers forced the company to expand to other goods and services.

“From September or October we will move into the new technology area and offer cheap PCs and software. We will offer a range of telecommunications

products and services, such as mobile phones and ISDN lines. And we hope to be able to offer cheap cars,” Castagno said.

Customers will be able to telephone or use a secure website to find out about bargains available. Companies supplying the scheme include Jessops camera shops, music provider PowerPlay Direct, electrical goods firm Empire Direct and holi- day provider Thomas Cook Direct.

“We aim to get to a position where through L&G's Extra, customers generate more in discounts than their annual premium,” Castagno said.

The scheme will be launched to L&G's 200,000 direct customers first, but will be available to intermediary customers if the intermediaries agree.