LLOYDS TSB Insurance has removed Independent from its Insure Direct panel after the troubled insurer closed its doors to new business this week.
The bank's insurance panel is one of the largest direct writers, providing more than 400,000 policies for household, travel, health and creditor insurance.
Distribution director for Lloyds TSB Insurance Mike Mitchell said: "There was no real alternative to the decision as Independent declared it was not accepting any new business."
He added that Lloyds TSB Insurance has joined the AA's panel of 15 home insurers which include, Folgate, Eagle Star, Fortis, Groupama, Cornhill, Pegasus, RSA, Prudential, Link, GAN Alpha, MMA and various Lloyd's syndicates.
Mitchell said its membership of the panel would provide it with an additional 20,000 policyholders each year.
Commenting on the move he said: "This is not a change of direction for us, but a case of us dipping our toe into another pool of business."
Lloyds TSB Insurance is the bank's captive general insurance provider and underwrites 60% of its business, mainly in the household arena.
