Lombard Direct, a provider of unsecured loans, plans to expand its product range to include direct home and motor insurance.
Lombard Direct commercial director David McCreadie said: "Many of our customers use their loans to pay for home improvements or to buy a new or used car and there is a strong demand for us to provide home and motor insurance."
The company, part of the Royal Bank of Scotland Group, said it would aim the products at new and existing customers.
Existing Lombard Direct customers will initially receive a 5% discount on their premiums.