Lloyds TSB Insurance could be set to enter the medical insurance market, in a bid to expand its growing SME general liability business.

The company is looking at the possibility of launching an employer's medical insurance product.

This will be available to new and existing business customers through its extensive branch network.

Phil Loney, chief executive of Lloyds TSB Insurance, told Insurance Times: "We are currently doing research [on a variety of new products], but we are particularly interested in how we can meet the health needs of our business customers, particularly those with a small number of employees.

"We are also interested in the whole area of how we can offer a better risk assessment service to those customers," he added.

Plans to expand the SME division come after the insurer announced a 133% increase in gross written premiums for its SME general liability product in 2006.

Lloyds TSB Insurance recently announced a 16% rise in profit before tax to £243m for 2006.