Ulster Bank to move into motor insurance

ULSTER Bank is to diversify into the motor insurance market and plans to create one of the largest in-branch distribution networks in the Irish market.

The bank announced yesterday that its product will feature discounts of up to 10% on new policies for its existing banking customers.

The car insurance offering will be available throughout Ulster’s 135-strong branch network in the Republic and will be underwritten and administered by Aviva Ireland.

The announcement comes less than a week after industry watchdogs urged consumers to shop around in the wake of Quinn Insurance — which includes leading motor insurance firm, Quinn Direct — being placed in provisional administration.

Tim McCarthy, managing director of Ulster’s retail direct division, said the company is focused on evolving its product offering to meet the needs of customers.

“Motor insurance is the latest in a suite of products to meet customers’ day-to-day banking and financial needs. This latest offer captures consumers’ appetite for greater value car insurance in Ireland, whilst rewarding our existing customers with attractive discounts and incentives.

“By partnering with leading insurer Aviva, Ulster Bank is now in a position to provide comprehensive cover nationwide through the familiarity and strength of the bank’s established branch network and brand name,” he added.

Although the move follows hot on the heels of the Quinn Insurance controversy, Ulster Bank’s management has made it clear that its expansion into the competitive Irish motor insurance market — in which Quinn Direct already commands a near 20% share of the market — is not primarily designed at upping market share, but aimed more at offering better value business to its existing customers.

As if to prove this, Ulster said that its existing customers with either one of the company’s ‘ufirst’ current accounts or a combined savings/ mortgage product will be rewarded an automatic 10% discount on all new policies, while a 5% saving will be available to customers with either a savings or a mortgage account.

Alternatively, existing ‘ufirst’, mortgage or savings account customers can purchase their policy online and avail of an additional internet discount of least 5%.