Tesco insurance deal to create 1,500 new jobs

11th Sep 2009 07:01

Tesco said it will create more than 1,500 new jobs with the creation of a new partnership with Belgian company Fortis providing motor and household insurance.The deal will give Tesco responsibility for retail pricing, sales and marketing, customer service and new product development, while Fortis will provide underwriting and claims management.The partnership also includes the creation of a new entity to underwrite and manage claims. Known as Tesco Insurance Limited the new entity will be owned 49.9% by Tesco Personal Finance (TPF), the supermarket giant's banking arm, and 50.1% by Fortis. It will start writing business towards the end of next year.Initial investments from Tesco and Fortis are expected to be in the region of £100m each.The partnership, which will initially run until at least 2015, covers certain TPF insurance products including car, van and household insurance. This area of TPF's business currently involves over £500m in annualised Gross Written Premium.The deal will add another 1.5 million motor and household customers to Fortis UK's existing customer base of around 7 million people. The number of cars insured by Fortis will increase to around 2.7 million making it the second largest car insurer in the UK.Last month, Tesco Personal Finance (TPF) will create over 800 jobs in Glasgow with the opening of a new customer service centre.