Sainsbury's Bank today announced that it has launched into the £10.6 billion motor insurance market* with a newly designed policy that offers extremely competitive rates in addition to some of the most comprehensive cover available.
Following strong financial results for the last twelve months, today's launch is a prime example of how it plans to achieve its growth strategy - which aims to recognise the full potential of the Bank and which is based on much stronger integration with the Sainsbury's supermarket business.
Product development is a crucial element of the Bank's plans and 'Sainsbury's Bank Car Insurance' exemplifies the type of product offering which the Bank will continue to seek to develop for its customers. The product is one of the top in the market in terms of both value and benefits. It is also extremely simple to understand and to buy and is aligned with the J Sainsbury core messages of offering excellent value products, which match and exceed customers' needs and expectations. The package is backed by first class customer service.
The new policy has been designed with innovative and highly valued benefits, which follow extensive research with consumers and into the existing marketplace. One example is a unique package of counselling and financial compensation for the victims of a reported road rage or car jacking incident. New independent consumer research commissioned by Sainsbury's Bank** found that 45 percent of drivers are worried about these crimes.
As part of the new strategy to integrate with J Sainsbury more than ever before, the policy's launch will involve it being included as part of a J Sainsbury-wide promotion later this month, in addition to a highly visible in-store presence which will also include the supermarket's petrol station sites.
Tim Pile, Chief Executive, Sainsbury's Bank said: "We believe strongly that this product is one of the best in the marketplace and that it will present a real challenge to the industry, which we see as becoming increasingly polarized between those companies that offer cheap premiums and those which provide more comprehensive cover. Our new product offers both and it is a welcome addition to our range of competitive, value products, which will help ensure we continue to enjoy rapid growth.
“For the year to 30 March 2002, our operating profit grew by 66.4% to £22 million and our underlying profit increased by 95%, all of which has been fuelled by excellent sales. Indeed, we have increased the number of personal loans sold by 100% and our insurance product sales have increased threefold.
“Sainsbury’s Bank became profitable only two years after its launch in 1997 and our future potential is fully recognised. New product development as part of a truly customer focused proposition is a crucial element in fulfilling our new, accelerated growth plans.”
About Sainsbury’s Bank car insurance:
The product has been developed to answer today’s drivers’ needs and concerns. It includes innovative benefits including being the first to offer a standard financial and counselling package for drivers who are car jacked or injured in a road rage incident.
Sainsbury’s Bank believes that it will offer some of the most competitive car insurance quotes in the marketplace. A recent sample of 100 motorists switching their car insurance in the last three months who would have saved with Sainsbury’s Bank indicates that more than half would have benefited by at least £100 and more than three quarters by at least £50 over their previous insurers.
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PRODUCT FEATURES
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| Product feature/benefit |
Sainsbury’s Bank Car Insurance
|
All Industry Motor Insurance Policies |
|
| 70% no claims discount if you have not made a claim for
five years |
Yes
|
88% do not offer this |
| No claims discount not affected by non-fault claims where
the other driver is known, but uninsured and the cost of repair has
not been recovered |
Yes
|
Only two other policies in the marketplace have been identified
as offering this |
| Personal accident cover of £10,000 or more for the insured
and their spouse |
Yes
|
90% do not offer this |
| Package of counselling helpline and £1000 financial compensation***
if you are the victim of a car jacking or are injured in a road rage
incident |
Yes
|
Package is unique. One company identified as offering
to pay the cost of professional counselling up to a set limit following
medical advice. |
| Free child car seats replacement on new for old basis
, following any car accident. (This is totally separate from and in
addition to personal belongings cover) |
Yes
|
None identified as offering this |
| |
Source: The Research Departmen
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For further information please contact
Phil Anderson / Stephanie Barrett / Lucy Wilkinson / Susannah Hamilton/
Citigate Dewe Rogerson
