News

Argos breaks into insurance sales market















Journal: TWUK


Section:


Title:


Issue Date: 21/08/00


Author:


Page Number: 5


Copyright: Other

 



Argos breaks into insurance sales market


Report by JANEARCHER


CATALOGUE shopping specialist Argos has become the latest high-street retailer to move into the insurance market.


The move is putting more pressure on agents which are already losing sales to outlets such as Boots and Tesco.


A recent Mintel report said travel agents’ share of the market had dropped from 70% to 64% over the past two years.


As well as selling single trip, annual and extended-stay travel policies, Argos is offering airport parking and car rental, after striking a deal with broker Holiday Autos.


Argos head of travel services Hamish Renton said: “We will look at moving into other areas of travel services if our customers request it.”


He said the retailer has 15 million customers and a catalogue in 65% of UK homes.


“We have priced ourselves aggressively as we want to take share,” he added.


The 15-day Europe insurance premium is £18.99, while worldwide annual cover costs £56.


One week’s parking at Heathrow costs from £50 and car hire starts at £89 per day in the Canaries.


ABCHoliday Ex-tras managing director Stephen Lawrence said he is comfortable that his company offers better value for money.


Aon Suretravel managing director James Beagrie said technology developments have allowed any company to sell travel insurance but the key factor is where clients are likely to buy. “Travel insurance is not an impulse buy – people are not going to take out a policy when they have gone into Argos to purchase an electric kettle but rather when they are in the travel agents trying to booking their holiday,” he added.


Clients have to phone a number in the Argos catalogue to take out a policy or book parking or car rental.


Competition: travel agents can expect Argos to sell insurance at aggressive price levels


Agents face tough competition as catalogue shopping specialist follows trend set by high-street rivals

Share article

View Comments

Jacobs Media is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.