Carphone Warehouse has broken into the b2b packaged insurance sector, winning a multi-million pound deal to provide phone insurance to RBS customers.
The joint venture bid from Carphone Warehouse and Aviva saw off fierce competition from a number of rivals said to include Phones 4u Group’s insurance arm Lifestyle Services Group (LSG), Ace, Assurant and Asurion.
Under the three-year deal, Carphone and Aviva will provide mobile phone insurance services to RBS and Natwest’s Silver, Platinum or Black current account customers, estimated to number around 12 million.
Aviva will act as the underwriter whilst Carphone will administrate the insurance service, providing replacement handset sourcing, supply chain services, warehousing and logistics, using a dedicated team at its Warrington offices. The service also offers 24 to 48 hour handset replacements and a doorstep swap service.
One source close to the bidding said of the joint venture’s win: ‘It is a surprise. This is Carphone Warehouse’s first move into packaged mobile phone insurance deals and Aviva is relatively new in this part of the insurance market too, but is now increasing its footprint with banks.’
A Carphone Warehouse spokeswoman said: ‘We are delighted to be partnering with RBS Group and Aviva, which will see our first class mobile phone insurance service extend to RBS
She added: ‘We are looking forward to working alongside Aviva, and our new dedicated team in Warrington is ready to ensure that we offer RBS customers the same high standard of service that our existing customers enjoy.’
RBS mobile phone insurance services were previously provided by CPP, which was one of the UK’s biggest mobile phone insurance providers. This is the second contract CPP has lost in the past 12 months after losing an insurance contract with EE to rival LSG in 2012.
CPP was fined £10.5m by the FSA last year for mis-selling card protection policies. It expects to pay out over £14.5m in compensation to affected customers.
Prudential deal for A1 Comms
A1 Comms has teamed up with Prudential insurance group to offer Prudential’s health insurance customers cut price mobile phone deals via A1 Comms’ BuyMobilePhones.net website.
The insurer is offering its Vitality Health customers cashback deals of up to £15 a month on new 24-month contract deals and on 24-month upgrade deals made on the website.
The rebate is paid into customers chosen bank accounts each month and is open to members until December.
A1 Comms MD Stuart Joce (pictured) said: ‘The deals are phenomenal and the Prudential is using them to add value to their Vitality Health customers.'
Author: Carol Millett