Nationwide, the UK's largest building society, has announced the termination of its motor insurance partnership with LV=, with effect from 30th June 2017. From this date, the society will no longer offer new policies and it is expected that the management of renewals will pass to the insurer.
The deal, estimated to be worth £5 million per anum, is no longer considered a strategically important one for the society. The end of this relationship also marks the end of one of the last motor insurance partnerships provided by any UK building society. It remains the case however, that most of the major banks continue to provide motor insurance to their customers.
It is noteworthy that Nationwide's 5-year home insurance partnership with RSA, announced in December 2015, has still not commenced, even though it was scheduled to launch in February 2017 (see our post dated 17 December 2015 for details). This means that Nationwide home insurance continues to be underwritten by UK Insurance, which also provides travel cover on Nationwide's "added value" current accounts. The society partners with L&G for life and protection policies