Phones 4u insurance company Lifestyle Services Group (LSG) is tipped to win a lucrative mobile phone insurance deal to provide mobile phone insurance cover to EE.
The operator EE is seeking to appoint one provider for all its insurance schemes across its three brands – Orange, T-Mobile and EE. Other bidders chasing the deal are said to include Ace, Asurion, Assurant, and CPP.
LSG currently provides insurance services for EE’s Orange consumer customers under the Orange Care insurance scheme. It also provided insurance services for Orange’s business customers until last month when EE ditched the plan, promising customers a new scheme ‘in the near future’.
EE has also wound up T-Mobile’s insurance scheme in preparation for the transition to one provider. The move comes as a blow to troubled insurance group CPP. The company confirmed last week that EE will not be renewing its contract to provide insurance services for T-Mobile consumer and business customers, and warned that the loss of the contract would result in reduced revenue this year and beyond. Chief executive officer Paul Stobart added: ‘CPP has enjoyed a strong working relationship with T-Mobile and while it is disappointing that this relationship has come to a close, the longer-term prospects for the group in the mobile sector continue to be promising.’
The move to combine the Orange, T-Mobile and EE insurance schemes is seen as part of a wider move by EE to cut costs and drive efficiencies. Informa telecoms analyst Dario Talmesio said: ‘It makes sense to bring one insurance provider on board and rationalise the process across the brands.’
Details of the new insurance scheme for EE, Orange and T-Mobile customers have yet to be revealed. EE has left it open to bidders to come up with innovative insurance solutions. The new insurance scheme is expected to extend to EE’s 4G customers.Bidders declined to comment on the tender. EE is expected to announce the winning bidder by the end of the month.
Editor: Carol Millett