Life insurance and pensions provider Scottish Widows and supermarket retailer Asda have ended a three-year alliance to sell life cover at the checkout because of disappointing sales.
According to IFAonline, a news service for financial advisers, the two companies have mutually agreed to end their association after supermarket sales of the life insurance policies failed to reach anticipated levels.
IFAonline quoted Nick Kirwan, protection market director at Scottish Widows, as saying: We have decided to end our relationship with Asda. We have had a meeting with them today, and we think the decision is right from our perspective because it hasn’t reached critical mass.
While job cuts were not mentioned, Mr Kirwan did say that a few staff would be affected.
The three year alliance saw Asda promote the life insurance cover in-store through checkout leaflets, while Scottish Widows administered and serviced policies through its centers.