Royal & Sunalliance (R&SA) is upgrading its electronic insurance services by linking text messaging services to its call centres. The insurer has invested £30,000 in its SMS messaging project.

E-business director Mark Christer claimed that it would save the company thousands of pounds.

“It costs £2.60 to send a letter but only 4.5p to send an SMS message, regardless of where in the world you are sending it to. Our users love it as we can contact them instantly to let them know what is going on,” he said.

Online insurance quotes are also available using mobile phones but, said Christer, a potential customer still has to go through the call centre to give financial details if they want to buy the package.