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Tesco Bank to break up underwriting partnership

The decision follows its October acquisition of a majority stake in Tesco Underwriting

Tesco Underwriting will be the sole underwriter of Tesco Bank’s new and renewing motor and home insurance business from 1 August 2021.

The decision will untie the partnership that currently sees Tesco Underwriting work alongside an external panel of six insurance partners to manage its motor and home insurance book.

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The six independent partners have been notified by Tesco Bank that while all policies currently underwritten by a partner will remain so until their renewal date, the policy will then be taken on by Tesco Underwriting.

The decision supports the “strategic” ambition of Tesco Bank in the insurance market, following its proposed acquisition of Tesco Underwriting in October.

The acquisition will be facilitated by the group’s buyout of Ageas UK’s 50.1% stake in Tesco Underwriting, which, subject to regulatory approval, will be finalised in Q2 of 2021.

Mark Airey, commercial director of insurance at Tesco Bank, said: “Today’s decision gives Tesco Bank full control over the customer experience for motor and home insurance customers. Tesco shoppers who want to protect their car or home with us will benefit from our ongoing excellent service levels, and our guaranteed clubcard discount.

“Tesco Underwriting already underwrites most new and renewing business across our motor and home book. We therefore know that our customers will be in safe hands.”

He added: “Tesco Bank would like to thank our existing home and motor panel partners for their support in looking after our customers.”

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