Tesco signs major Aviva life insurance deal
Supermarket giant Tesco has now signed up Aviva to a five year deal as part of a plan to offer life insurance and critical illness insurance to customers through its stores.
With nearly 3000 stores across Britain, the supermarket giant will be hoping to advertise the importance of life insurance and critical illness insurance to their customers, and the move simply extends the huge portfolio of Tesco’s.
The announcement was accompanied by an announcement that the provider was in the final stages of tying up a deal to offer mortgages, to add to the credit cards, loans and other insurance products they already offer to their customers.
With one in every eight pounds spent in the UK already spent in Tesco, the move could see the giant increase revenue after a few slow quarters for their supermarkets.
Tesco already has an existing relationship with Aviva, who provide their staff life cover policies and the deal will see Tesco transfer all their existing life policies from Friends Life to Aviva, a change customers will see over the next year.
Tesco Banks chief executive, Benny Higgins laughed off reports that the provider was struggling to live up to their previous product launch promises, as it was announced the current accounts will not be released until 2013, and the mortgages were over a year late.
He explained that the bank was still testing to avoid a NatWest style banking disaster, and wanted to make sure everything was up and running after the groups own IT problems earlier last year.
With Tesco previously using the RBS systems to offer customers access to their accounts the team want to be sure that everything is transferred to their own servers before lauching products to the public.
Mr Higgins added, “We are now in the final phase of testing our mortgage operations and developing the right launch products.”
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