RBS Insurance and Sainsbury’s Finance confirm details of proposed insurance partnership
RBS Insurance is in negotiations with Sainsbury’s Finance over becoming its motor insurance provider.
The two firms have signed heads of agreement, and are close to agreeing the final terms of a five-year contract.
Under the proposed deal, RBS Insurance will provide the underwriting, claims management and sales and service support on new car insurance policies sold under the Sainsbury’s Insurance brand.
The proposed partnership will see the new proposition launched this summer. Insurance Times understands the prelminary lauch date is June, and the target is 500,000 customers over the five years of the contract.
RBS Insurance chief executive, Paul Geddes, said: “We’re a strongly positioned insurer in the UK, with a portfolio of successful and enviable brands and we want to build on this success.
"Sainsbury’s Finance is an attractive partner due to their strong distribution channels in stores and on the web, and a compelling loyalty card proposition."
RBSI will replace Esure as Sainsbury's motor insurance partner. RBSI also had a similar arrangement with Tesco until the supermarket switched to Fortis (now Ageas) in 2009.
Geddes added: "We are currently the largest motor insurer in the UK and we have a proven track record working with a variety of brands across a number of key commercial sectors.
"Our experience of partnering with high profile brands over the last ten years has enabled us to develop the capabilities needed to drive growth in a quickly evolving market.”
David Fisher, chief executive of Sainsbury’s Finance, said: "We look forward to developing a successful partnership with RBS Insurance.
"They bring a strong operational platform, technical expertise and extensive experience. We also share the same ambitious plans for growth."