UK-based conglomerate The Co-operative Group is reportedly planning to re-enter the life insurance market as part of its strategy to tap its large customer base.
The company, which is making a comeback after six years, believes that it can attract customers, particularly among its 4.6 million members.
In 2013, the Manchester-based firm offloaded a bigger slice of its life insurance business to Royal London for £220m after the former found a £1.5bn capital hole in its banking unit, reported Financial Times.
Customers who opt for the Co-op’s life insurance plan will be offered two six-month payment holidays throughout the lifetime of the policy following a 12-month of qualifying period.
Additionally, they will have flexibility to reduce cover instead of paying back the shortfall. Meanwhile, the insureds can also select critical illness protection.
The Co-op deputy chief executive Pippa Wicks told the publication: “Life insurance is not new territory for us, we have a rich history in this area and we can see a clear need to come back into this sector and provide a distinctive Co-op solution for our members.”
The Co-op manages over 2,500 food stores along with 1,000 funeral homes.
In January this year, the Co-op signed an agreement to offload its general insurance underwriting business to Markerstudy for £185m.
The retailer has also signed an agreement with Markerstudy to distribute motor and home insurance products for a period of 13 years. It will also develop new products and continue to work with its existing partners.
Last year, the group returned into healthcare by acquiring Dimec, an online pharmacy. The Co-op divested its chain of chemists to Bestway for £620m in 2014.
“The Co-op is returning to its roots . . . it has proven expertise across its 175-year history and within insurance and healthcare, it is developing new solutions for members in an agile and capital-light manner,” the business stated.