Swiftcover.com, a new online insurer backed by the Primary Group, has been launched, initially selling motor and travel cover.
The company, which will be headed by ex-Churchill director Andy Blowers, claims that at least 70% of people who get a quote will save 20%.
The business is listed under the name of GBI (Holdings) as a wholly owned subsidiary of Primary.
Based in Woking, Surrey, the company claims it is "cheaper than most" as it does not run an expensive call centre operation.
Customers manage their policies entirely via the internet, including adding on extras and checking the progress of claims.
Swiftcover will be launching an affiliate programme for owners of websites.