Insurer becomes sole provider of Nationwide motor and travel insurance.
LV= has entered a six-year contract to become the sole provider of Nationwide Building Society’s motor and travel cover.
Under the contract beginning in December, LV= will also provide business insurance policies for shops, offices, surgeries and owners of buy-to-let properties.
Nationwide’s motor insurance is currently with RBS, while its travel is with Mondial Assistance. Its small and medium enterprise cover is with Oval.
John O’Roarke, managing director of LV= General Insurance, said the fact that LV= has scooped business from RBS has nothing to do with RBS putting its insurance arm up for sale.
He said: “We’ve been talking to Nationwide for quite a long time. So it certainly predates RBS’s decision to sell RBS Insurance, so it’s not connected.”
O’Roarke added that the partnership boosted LV= in its plans of becoming a top five insurer in its chosen markets by 2012, with motor cover topping the company’s list of priorities. He said: “I can’t disclose the size of the motor account, but it is significant. We think there’s quite a big opportunity to grow it, because it hasn’t really been invested in during recent years.”
He said the travel insurance account was also a decent size, but had shrunk in recent years, therefore he claimed there was potential to grow it significantly.
Robin Bailey, Nationwide’s insurance director, said: “We are confident that this new partnership will provide our customers with a broader range of products, competitive premiums and a first class level of service.”
In addition to sales, underwriting and policy administration, LV= will manage all new business marketing, including planning and budgeting. The insurer will also handle all quote and customer service calls. Existing customers will be moved to policies underwritten by LV= at renewal.