Highway Insurance plans to enter the household insurance market have been put on hold after the insurer fell out with its underwriting partner.

The company had planned to make its move with the nationwide roll-out of a broker-only full-cycle EDI household policy at the end of 2006.

The specialist motor insurer had hoped to expand its broker network of 1,300 individual intermediaries, as a result of entering the household market for the first time.

A source close to Highway told Insurance Times that the project had now been "canned" following the disagreement.

The insurer confirmed the decision. In a statement it said: "Highway launched a pilot for household insurance last year in conjunction with an underwriting partner. We were not entirely satisfied with the results of the pilot and we therefore made the decision to terminate the relationship."

It added: "The termination took effect from 31 December 2006 and was entirely amicable."

Highway insisted it was still committed to developing a household product for its broker partners and intended to relaunch the pilot, this time as a 100% Highway product, in April 2007.

Highway Choice Home was originally launched in April 2006 and piloted by two brokers, Direct Choice and 1st Quote, part of Highway Retail.

It followed a strategic review of the possibilities for using the insurer's established distribution network to sell non-motor products.

Chris Hill, managing director of Highway said at the time: "We are very confident that the outcome will be positive and that household will become a valuable profit generator for both Highway and our brokers in the future."