Tesco enlists Fortis to develop car insurance products
Tesco has enlisted Belgian-Dutch firm Fortis to develop the car insurance arm of its finance operations.
The supermarket giant ended its previous partnership with the Royal Bank of Scotland and given Fortis first refusal of the £500 million deal to increase its share of the insurance market.According to reports, while the partnership is verbally agreed the finalizing contracts have not yet been signed.
If the deal is clinched it could create 1,500 jobs in the UK and see Fortis underwrite Tesco's insurance products in the last two quarters of this year.
Fortis has a history of developing the financial products of high street retailers; it has worked with Marks and Spencer and is set to embark on a similar enterprise with John Lewis.
Tesco is reportedly keen to capitalise on the battered reputations of the UK's high street banks to push its own financial operations.
Earlier this year, the car insurance broker announced it will diversify into the current account market.
Chief executive of Tesco Finance Bennie Higgins told Scottish newspaper the Sunday Herald that the products would "be about … transparency".
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