Dixons is one of the nine companies which RSA has selected to form its nationwide panel chosen to replace policyholders' stolen or damaged goods

Insurer Royal & Sun Alliance has cut the number of suppliers it uses to replace policyholders' stolen or damaged goods, in a bid to reduce its own costs and improve customer service.

Dixons, Signet and Halfords are among the nine companies that remain from the 36 which used to work with RSA replacing goods valued at up to £150 million a year.

The insurer hopes that the economies of scale and reduced administration costs will yield savings of around £10m a year.

The other firms involved include ChemDry for carpet restoration, Norwich Angling for fishing equipment, and Direct Lawn & Garden for garden equipment and power tools. Each supplier will cover the whole of the country.

The new service will offer RSA customers seven days a week delivery, guaranteed delivery times, and the installation and security marking of equipment.

Steve Broughton, RSA personal financial services manager director, commented: “We already achieve major savings through the use of replacement schemes, but the new arrangements represent a significant step forward, including the use of “open book” accounting and will contribute to an improved performance from Royal & Sun Alliance.”

Meanwhile, CGU is expected to announce its slimmed down panel of suppliers in the next few days.