“WHERE'S Lucky?” is the question – and the answer is everywhere.

Royal & SunAlliance (R&SA) has spent £20m in development costs for the relaunch of its direct arm this week and will spend another £20m promoting it, using Lucky – a lovable scruffy dog.

A massive fly-poster and billboard campaign was followed by the first “Looking for Lucky” television advertisement during Coronation Street's peak viewing slot on Sunday.

The new brand alone cost £1m to develop. “More Th>n from Royal & Sunalliance” combines old and new in an attempt to shake off the insurer's stuffy image while retaining the qualities of security and trust. The aim is to increase its direct arm business by acquiring 400,000 new customers each year. The insurer has about two million customers at the moment.

Call centre staff have been extensively retrained in the past 18 months to boost cross-selling sales from an average of one to three per customer.

More Th>n offers an extensive product range including motor, home, life, health, pet and travel insurance,

as well as savings and investments. Customers will also receive complimentary services, from email and text messaging reminders of when their MOT or car tax is due to an online portfolio tool enabling them to keep track of their investments.

The website – http://www.morethan.com – has been enhanced with lifestyle features, including a link to Whatcar magazine's site. Customers will be able to tax, insure, and finance buying a car online.

“We are taking on Direct Line,” said Mike Wallwork, public affairs manager. “This is the most advanced and extensive direct service in the UK.”