New intermediary BDML Connect, run by ex-Gan chiefs Keith Morris, Sandy Dunn and Angus Ball, is handling a huge pilot project with Anglian and Thames Water that will become a nationwide initiative by April.
BDML is selling badged household and motor insurance for the two utilities, which provide water to approximately five million households.
The two operations will be called Anglian Water Direct, and Thames Water Direct. They will market themselves via mailshots with their bills. Anglian and Thames are now mailing 1.5 million customers to gauge the response.
The pilot began on January 24 and will run until the end of March. Heads of agreement are in place, provided the pilot is a success.