Sainsbury’s launches car insurance
Supermarket aims for rapid growth of financial arm
July 16 2002
Sainsbury’s Bank has entered the motor insurance market with a policy pitched at winning business from other insurers.
In a move designed to fuel growth of its financial services arm, the supermarket operator is offering competitive rates as well as what its says is some of the most comprehensive cover available.
The strategy is to develop the potential of the bank through much stronger integration with the retail business. The new insurance product is simple to understand and buy, “and is aligned with the J Sainsbury core messages of offering excellent value products which match and exceed customers’ needs and expectations,” said the company.
One example of the terms on offer is a package of counselling and financial compensation for the victims of a reported road rage or car jacking incident. Consumer research commissioned by Sainsbury’s Bank found that 45 per cent of drivers are worried about these crimes.
The policy’s launch will be included in a company-wide promotion later this month, as well as being marketed in stores, especially those which include supermarket’s petrol station sites.
Tim Pile, chief executive, Sainsbury’s Bank said: “We believe strongly that this product is one of the best in the marketplace and that it will present a real challenge to the industry, which we see as becoming increasingly polarized between those companies that offer cheap premiums and those which provide more comprehensive cover. Our new product offers both and it is a welcome addition to our range of competitive, value products which will help ensure we continue to enjoy rapid growth.”
He added that insurance product sales tripled in the last financial year. “Sainsbury’s Bank became profitable only two years after its launch in 1997 and our future potential is fully recognised. New product development as part of a truly customer focused proposition is a crucial element in fulfilling our new, accelerated growth plans.”
Marks & Spencer announced plans to improve the performance of its financial services division last week, while Asda is also reported to be planning to add additional insurance products to its offer.
