Journal: TWUK | Section: |
Title: | Issue Date: 14/08/00 |
Author: | Page Number: 3 |
Copyright: Other |
Supermarket set to lure holidaymakers away from high-street agents
Tesco launches range of insurance packages
Report by LOUISE LONGMAN
SUPERMARKET group Tesco has launched a range of in-store travel insurance packs to entice more holidaymakers wanting to buy policies away from high-street agents.
Called Pay at the Till, the insurance packs are being trialled at seven stores in the UK and will provide policies for individual travellers, couples and families for one and two-week holidays, as well as European and worldwide annual cover. If successful, the scheme will be rolled out to all Tesco’s 600-plus stores later this year.
Priced from £15 for a one-week trip to Europe for one person, to £125 for annual family cover worldwide, the policies are much cheaper than those offered by agents. Lunn Poly’s average price for one week to Europe is £33.99.
Tesco’s 11 million Clubcard holders can pay for the packs at the till. Annual policies become effective from the date of purchase and for single trips, customers must tell the checkout operator the date of their holiday in order to be covered.
Customers will also be able to redeem points against the packs. Cover for a two-week family trip to Europe will equate to 50 points or 50p.
Tesco Personal Finance head of insurance Paul Baxter said: “Agents will start to notice customer penetration dropping once we roll this concept out to our stores nationwide.”
He would not reveal targets but said that if a handful of packs were sold weekly in every store, it would be a success.
“Early indications from a couple of stores show us they are selling well,” he said.
An ABTA spokesman said: “Checkout operators won’t be able to give customers advice about the right type of insurance they take out but agents must remain alert to what other retailers are doing.” he said.
Tesco’s packs are regulated by the Associated Body of Insurance and the Insurance Ombudsmen Bureau. Leaflets will advise customers about the policy appropriate for them.
Check this out: customers can pay at the till for their policy
Reductions: Tesco’s prices are cheaper than policies offered by agents