ASDA will offer life and mortgage insurance to its 11 million weekly shoppers in the UK supermarket giant's latest foray into financial services.
The move follows the recent roll out of motor, travel and home insurance through its 263 stores and website. The provision of financial services is a key aim of US parent Wal-Mart and the launch of life insurance in the UK is a worldwide first for the retailer.
David Rutley, ASDA's director of financial services, says: “We aim for all our insurance services to be easy to understand and life and mortgage insurance are no different, with the added benefit of immediate cover over the phone for most customers.
Scottish Widows will supply the life products and provide a dedicated call centre team in Edinburgh.
But Neil Barnes, proprietor of Essex-based Security Financial Services, warns ASDA's entry could impact on brokers through dual pricing.
He says: “With the exception of building and contents insurance, if they're able to offer competitive premiums then brokers will suffer.”