Lloyds TSB Insurance and Royal & SunAlliance (R&SA) have entered a supply chain collaboration to source home claims procurement.
Under the deal R&SA will manage the home supply chain for both companies, thought to be worth in excess of £350m per year in claims costs. Both companies will continue to service and administer their own claims.
Lloyds TSB Insurance managing director Phil Loney said: "As far as we know no one has ever put together this kind of deal.
"We will be renegotiating our relationships with everyone in our buildings supply chain bar our flat roof contractors and disaster management."
The new relationships will be renegotiated over a 12-month period. Loney denied the joint deal would lead to any issues of over reliance on a few suppliers.
He said: "This deal does not include our loss adjusters. And where we see capacity issues we will have more than one supplier and always have the option of cash payments."
