Bank brings supply chain services in-house post-HBOS merger

RSA’s affinity business will suffer a blow next year when Lloyds Banking Group cuts it out as a supply chain provider.

RSA has been working with the bank’s insurance arm for five years, handling home insurance claims through its supply chain network.

A Lloyds spokesman said the bank had a “very successful” relationship with RSA, but would bring the supply chain services in-house.

The decision is understood to be part of a wider review the bank has taken since merging with HBOS last year, which also has its own insurance division. The spokesman said: “Lloyds Banking Group General Insurance (LBGGI) has reviewed its options for the combined household insurance supply chain offering.

“While this has been a very successful five-year partnership with the RSA supply chain collaboration, LBGGI has decided to operate its own supply chain.

The new arrangements will be implemented from mid-2010.”

No one from RSA was available for comment.

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