Allianz UK has entered into a strategic agreement with Sainsbury’s Bank to deliver home and motor insurance products to the bank’s customers, marking a significant expansion of Allianz’s presence in the UK retail insurance market.
Starting November 1, 2025, Allianz UK—through its subsidiary Liverpool Victoria Insurance Company—will begin issuing replacement home and motor insurance policies to Sainsbury’s Bank customers as their existing coverage comes up for renewal.
The agreement follows Sainsbury’s Bank’s strategic decision to gradually exit the banking sector and transition to a model where its financial products are offered through selected brand partners.
Both Allianz and Sainsbury’s Bank highlighted a shared commitment to delivering streamlined products and a strong digital customer experience as key drivers of the new partnership.
Sainsbury’s began phasing out its core banking operations in January 2024. As part of this transition, home and motor insurance customers are not required to take any immediate action regarding their current policies.
This latest deal follows Allianz UK’s recent collaboration with Volkswagen Financial Services UK and supports its broader strategy to grow its embedded insurance capabilities and diversify distribution through strategic partnerships.
The move also comes amid continued transformation in the UK home and motor insurance markets. The motor segment has been challenged by rising claims inflation, largely due to increased vehicle repair and replacement costs. Meanwhile, the home insurance sector has experienced volatility from factors such as escape of water claims, storm damage, and inflationary pressures on building materials and labour.
In response, insurers have implemented premium increases, adopted more selective underwriting practices, and placed greater emphasis on digital channels and customer retention strategies.
