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Supermarkets enter life insurance market

Date: Tue, 20 Jan 04 Analysis

LONDON, UK - Both Sainsbury's and Asda chose yesterday to announce they are to enter into the life insurance market, claiming they were poised to shake up the industry in which rival supermarket chain Tesco already has a footing.

Sainsbury's confirmed it has struck a deal with insurer Legal & General to offer term assurance through its Sainsbury's Bank arm, promising that its policies will be “among the most competitive in the marketplace'.

Asda revealed that it would be promoting its Scottish Widow-provided life insurance across its 265 UK stores in an attempt to draw consumers away from so-called “rip off' premiums charged by some providers.

Sainsbury's Bank suggested that as many as 3.5 million people were likely to take out life cover this year, and added that with the price of cover having fallen dramatically in recent years, many people were likely to be overpaying.

Tesco's personal finance arm offers shoppers life insurance in a link-up with Norwich Union and has built up a reputation as one of the best-value providers.

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