AA Insurance Services has appointed the Churchill Group as its sole provider of travel insurance.
Churchill will provide AA-branded annual and single-trip travel insurance from 1 January 2003.
It will also provide travel insurance for the AA's Five Star European Breakdown Assistance.
The account will be handled by Churchill's third party travel administrator, Inter Group Insurance Services, and underwritten by its specialist travel insurance company, Indemnity Insurance.
A spokewoman said the AA's travel insurance and overseas assistance would be the first elements to go live.