Virgin Money predicts that its foray into UK general insurance will have a big an impact as the entry of supermarket giants Tesco, Asda and Sainsbury’s, according to UK managing director Mark Hodgkinson.
“The leading retail brands have taken a substantial slice of the direct general insurance market,” said Hodgkinson.
“We have a very strong brand and so can compete in the competitive market.
“We believe we can be as successful as Tesco.
The launch of its general insurance offerings, including pet, motor, home and travel products, puts Virgin Money in direct competition with well-known insurance brands such as Churchill and Direct Line.
Hodgkinson did not rule out a move into the mid or high net worth markets in the future, but said Virgin would concentrate on the mass market for the next few years before considering any possible move into niche insurance.
No specific target for market share has been set for the new general insurance business, but Virgin said aggressive pricing and its strong brand would see it take a substantial share of the direct market.
Virgin Money does not have a separate general insurance division. The company is structured to keep all its financial services integrated into one cohesive management and operational structure under chief executive Peter Pester.
