Tesco and RSA team up to provide pet insurance

Tesco Bank has recruited the help of RSA to provide underwriting and claims management for the supermarket bank's pet plan insurance branch.

The deal will support Tesco Bank's proposals for the growth of its pet plan packages in the short and long term through developing new services and products for both new and existing customers.

As a result of the deal, RSA is to create around 230 new jobs to cope with the additional workload and a premium income of £100 million is expected in the first year with RSA beginning to underwrite Tesco's direct pet insurance policies as of the final quarter of 2010.

Tesco is currently the UK's largest online pet insurance provider, with around 700,000 pets protected under its various policies. Current customers will migrate to RSA over the next year as the supermarket bank seeks to further extend its position at the peak of the market.

Adrian Brown, chief executive of RSA, said, "This deal marks a significant step in RSA's development as a major player in the pet insurance market. By combining our expertise in underwriting, pricing and strong service delivery with Tesco's brand and marketing ability, I am confident that this partnership will go from strength to strength."

By Mark Hornby