Insurance entrepreneur Peter Wood has revealed plans to launch a new general insurance business next year.
Together with Halifax Bank of Scotland, Wood's new venture will focus on higher premium and non-standard motor lines, and may also target the small commercial market.
It is understood the new business would use the internet as the primary sales channel and tap into esure's existing infrastructure to keep costs down.
Wood said: "Although car insurance appears to be a commodity product, many sectors of the market are poorly served, with little choice or innovation on offer. Using the internet, advanced underwriting and a co-operative relationship with esure, the new business will deliver significant benefits to customers."
Wood, who originally set up Direct Line before selling that business to Royal Bank of Scotland, will be chairman of the new company, with Colin Batabyal, an existing esure director to be chief executive.
He added: "Although car insurance appears to be a commodity product, many sectors of the market are poorly served, with little choice or innovation on offer. Using the internet, advanced underwriting and a co-operative relationship with esure, the new business will deliver significant benefits to customers."
