A row over pricing levels on Sainsbury’s new health insurance product has led to allegations of profiteering.
The supermarket has been accused of creaming off near 100% commission levels on its AIG-backed product.
The argument centres on comparisons of the new Sainsbury’s scheme with an existing AIG product, HealthNow.
Competitors such as HSA are claiming the two products are essentially the same, except in the price tag, an allegation denied by the supermarket.
Sainsbury’s manager of health insurance said: “The two products are completely different.
The company highlights differences in physiotherapy levels between the two schemes and the fact that Sainsbury’s offer over 900 surgical procedures compared to AIG’s 130.
Price comparisons of the two products show a 21-year-old would pay £21.95 for the Sainsbury’s product but only £11 for AIG’s HealthNow scheme. A couple in their 30s pays £52.70 with Sainsbury’s or £29 with HealthNow.
With Sainsbury’s in the middle of a media blitz to try and publicise the new scheme, the pricing has prompted sharp comment from a number of competitors.
HSA marketing and sales director Chris Harrison said: “We can only guess that Sainsbury’s are taking huge amounts of commission or profit share, at the expense of their customers.
“While good food might cost less at Sainsbury’s it is clear to us that health insurance will cost substantially more.
