Co-operative Insurance Society will be offering specially tailored versions of Unum Provident's individual income protection products following a new partnership between the two companies.
CIS will offer an earnings' protection plan and an expenditure protection plan covering mortgage payments. It will sell the products through its tied salesforce of 3,000 and Co-operative Bank Mortgage Centre.
Unum Provident will be responsible for underwriting and admin as well as being reinsurer of the entire liability.
The firms hope to develop a strategy to help bridge the income protection gap which stands at £270bn a year, according to a Swiss Re report.
Unum Provident director of individual marketing Eugene McCormack says: “The public does not understand that income can be protected up to retirement and there is also ignorance about the availability of the product. CIS has a substantial distribution system and long-standing customer relationships. This partnership will help us to educate consumers and advisers of the benefit of income protection.”
CIS chief operating officer Finian O'Boyle says: “We are confident that we can establish and build on solid foundations for market development in this sector, which is ripe for growth.”