View more on these topics

Tesco ditches NU for Direct Line

Tesco Personal Finance has dropped its controversial link-up with Norwich Union as life and general insurance product provider, replacing it with Direct Line.

In assessing the pitches of various providers, Tesco PF says NU was unable to provide the speed of processing and customer interfacing it requires to drive its business forward.

NU attracted criticism from the IFA sector – in particular from Sesame – in 2003 for the Tesco deal which saw its customers offered cheaper rates than possible through the IFA channel. NU argued then that the only reason Tesco was able to offer cheaper rates was because it did not offer advice and because it rebated commission to clients.

Direct Line is due to take over for Tesco in February 2006. The move effectively brings Tesco Personal Finance in-house as Direct Line is owned by Tesco PF’s joint-venture partner Royal Bank of Scotland.

The supermarket says the connection with RBS was not the overriding reason as to why Direct Line won the deal. Tesco also announced this week that it will be selling investment bonds and index-linked savings certificates through National Savings & Investments.

Norwich Union head of media relations James Evans says: “We decided after the repitch that we could not commit to the level of investment in the way that Tesco wanted, without it having an impact on other development plans.”

Tesco Personal Finance media relations manager Stuart Neill says: “We are look- ing at processing speed and developing further. NU has priorities elsewhere. Direct Line has the quickest pro- cesses in the markeplace and is consistent with Tesco PF’s proposed business model.”

Lifesearch senior technical adviser Kevin Carr says: “NU’s product range is average in terms of quality and is not always competitive on price. NU have suffered service issues in recent months but if they refused to become cheaper while addressing these issues or if they have decided to provide greater support to the advisory channel, then we believe NU deserve praise.”


Will your online process protect you from trial?

In the past two to three years, many life companies have invested huge amounts of money and time building the technology and infrastructure for a fully automated end-to-end process for the acceptance of protection business. This has been a big win for IFAs who enhance business by writing more of their cases online with immediate acceptance.

RLAM plans absolute fund

Royal London Asset Management plans to launch an absolute return bond fund aiming at Libor plus1 per cent in the second quarter of 2006. The fund is to be run by head of fixed interest Jon-athan Platt and his team. The RLAM income trust, which Platt runs with Sajiv Vaid, has ret-urned 40 per cent […]

Happy hour for sipps?

When two men in a pub can effectively decide to sell their own Sipp is it time for regulation? James Phillipps finds the industry divided.

Hamptons and Towry Law in deal to build on Sipp changes

Hamptons International Mortgages and Towry Law are in talks over an introducer relationship that will see the two firms exchanging mortgage and Sipp-inspired business. In a move described as an equal partnership between the two firms, the deal, which is expected to be finalised in the next few weeks, aims to capitalise on Sipp investment […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm