Shortlist of four insurers is drawn up, while Churchill is tipped to lose out
A shortlist of four insurers has been drawn up to replace Churchill on the £300m Lloyds TSB motor account.
It is understood that Norwich Union, Zurich, Budget and Allianz Cornhill could be in the frame to win the contract from Churchill.
A Lloyds TSB spokeswoman said: "As you would expect from a leading insurance provider, Lloyds TSB reviews all our supplier relationships on an ongoing basis in order to provide the best possible value and products for our customers.
"We never comment on market speculation."
Budget, through its affinity arm Junction, is being singled out as the most likely winner in a tender process. According to industry insiders, the broker could easily satisfy the requirement Lloyds TSB imposed on Churchill when the company took on the business, that it be placed through a panel.
At the time Churchill used in-house broker Devitt to place the business. Around 70% of it went back with Churchill, the rest around the market.
Up to 400 jobs within the RBS Insurance group are thought to depend on the contract.
Under human resource legislation the responsibility for the employment could rest with Lloyds TSB, making the separation of the business from Churchill significantly more complicated.