Over 3 years after announcing that it could become a "Top 10 Household Insurer" by 2011, British Gas has launched a home insurance partnership with AXA Direct & Partnerships. Admittedly that claim was made in a recruitment advert for an Underwriting Director; a post eventually filled by Edward Dutton, formerly the Underwriting Director of AXA Personal Lines.
Back in 2009, British Gas received authorisation to underwrite both warranty and household business, but at this stage, it has decided to work with an established insurer to provide home insurance to its 4.5 million UK customers. The length of the partnership has not been announced and it is not yet known whether the major aggregators will add the brand to their panels.
British Gas has provided a range of repair and warranty services to its customers for many years under its "Homecare" brand and home insurance could be seen as a natural brand extension for this and other utility companies.
All utility companies have access to large customer bases and good quality data, but the issue for British Gas could ultimately be whether its proposition is sufficiently differentiated and whether or not customers feel genuine "affinity" for their supplier of gas and electricity.
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