SUSSEX supermarkets and utility companies could soon be selling household insurance.

They are poised to woo customers away from traditional insurance providers with offers on buildings and contents cover, says a new report. By buying financial products with the weekly shop, customers stand to save money. Supermarkets hope this will persuade them to buy insurance along with their weekly groceries. Seven out of ten home-owners buy buildings insurance from their mortgage lender. But new entrants into the personal finance market, such asSainsbury and British Gas, look set to break this grip on the market, say market analysts, Datamonitor. As well as having a strong brand trusted by consumers, they have a substantial customer base from which to market financial products. But Datamonitor said winning customers would not be easy and its figures indicated that consumers tended to keep their insurance with their mortgage provider.

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