Tesco strikes Aviva partnership

Supermarket Tesco and insurer Aviva joined forces today in a move targeting the estimated three in five families in the UK who do not have life protection cover.

Edinburgh-based Tesco Bank offers credit cards, savings, personal loans and general insurance to 6.5 million customers but the deal will ramp up its range of life insurance and critical illness protection products.

The five-year agreement with the UK’s biggest insurer starts later this year and will see products sold online and over the telephone, with customers also able to obtain information through some of Tesco’s 2,900 stores.

Aviva currently provides a private medical insurance scheme for Tesco’s 300,000 UK employees and had a similar tie-up with the supermarket in 2005.

Its products are advertised by former Fast Show star Paul Whitehouse and while it has more than 14 million customers it is hoping to grow its life protection business and believes three in five families are currently not covered.

David Barral, chief executive of Aviva UK and Ireland Life, said: “This is a fantastic opportunity for two household names to deliver a real benefit for millions of people across the UK who have no family protection in place.”

Tesco Bank was launched in 1997 as a joint venture between Tesco and the Royal Bank of Scotland although the supermarket bought the remaining 50% stake for £950m in 2008.

Julie Hopes, managing director of insurance at Tesco Bank, said: “Partnering with one of the UK’s leading life protection providers will bring benefits to our customers offering them a range of straightforward and good value products that we believe will give customers the reassurance they look for in life products.”