Virgin Money has entered the general insurance market promising to undercut and outperform the traditional market.
In a statement, the new entrant said it planned to target the financial old guard, "traditional big insurers who have dominated the market, where customers pay too much and have had to suffer poor service for too long".
The Virgin insurance products consist of motor, home, travel and pet cover underwritten by UKI. Virgin claimed that it would not only offer savings of up to 48% on motor and 40% on home, but would also accept monthly payments without extra charge.
Virgin Money UK managing director Mark Hodgkinson said: "The leading retail brands have taken a substantial slice of the direct general insurance market.
"We have a very strong brand, so we can compete in the competitive market. We believe we can be as successful as Tesco."