HBOS has set a target for its direct motor insurance subsidiary Esure to gain 10% of the UK private motor market within the next ten years.
Esure currently has a 2.5% share of the UK market, representing 850,000 policies signed since its launch in 2001.
The company said it expected to have 1 million policies in effect by the end of 2004. An Esure spokesman confirmed that the company was way ahead of its initial targets for policy numbers. But the company is still significantly smaller than its direct car insurance competitors, such as Direct Line and Churchill.
HBOS insurance and investment chairman Phil Hodkinson said a 10% market share was a realistic target for the direct insurer. He said the company profile had been boosted by the series of adverts featuring Michael Winner
According to a report, approximately 60% of Esure customers now use the internet and HBOS said it saw opportunities to sell the insurance to its larger customer base.
