Policies will be underwritten by Junction’s panel of 14 insurers
Junction, insurance group BGL’s affinity arm, has announced a new five-year deal with Legal & General (L&G) to provide motor insurance. The move signals an entry into the market for the insurer.
The policies will be underwritten by Junction’s panel of 14 insurers using the household L&G brand name, and will be available to customers through direct insurer and price comparison websites.
With the new offering, Junction and L&G plan to attract 100,000 customers within the next three years.
L&G specialises in life and home insurance, as well as investments and pensions, but this new deal signals an entry to the motor market.
L&G Insurance managing director John Hyde said: “We are delighted to extend our existing relationship with BGL Group and to harness its motor insurance expertise in developing our offering.
“Our customer research will inform the development of some exciting car insurance propositions, proving that we really do put our customers at the heart of our business.”
Junction and L&G already have a long-standing relationship in which L&G has acted as a panel insurer for several BGL brands.
Junction corporate partnerships director Sharon Stephen said: “This move into car insurance presents a huge market opportunity.
“We and Legal & General have been working together on how best to engage customers around the new offering and have great confidence that it will be a highly successful venture in 2014 and beyond.”
In March 2013 L&G’s general insurance (GI) business announced plans to start selling motor insurance products as part of its plan to diversity its business.
At the time L&G GI director Mark Holweger said that L&G would be distributing motor products rather than underwriting them, but he added that L&G could eventually start underwriting motor.
The motor move is part of a wider plan to grow L&G’s GI book beyond its core household business.