Co-operative Insurance (CIS) Expects Growth in Eco Insurance Market

MANCHESTER, England, January 25 -- The growing demand for green financial services products will lead to more and more motorists opting for eco insurance products, a leading insurer said today (25th January).

David Neave CIS Director of General Insurance said, "all the evidence points to consumers taking on board the issues surrounding climate change".

The annual Ethical Consumerism Report, produced by CIS's sister company The Co-operative Bank, shows that more and more consumers are buying green products and services. In the six years since the report was first issued the amount spent on ethical goods in the UK has increased from GBP8 billion to GBP29.3 billion per annum with the green financial services sector increasing from GBP5.1 billion to GBP11.5billion over the same period.

Therefore, when CIS launched its Eco motor insurance product in July 2006 it was confident that there was a market for such a policy.

In addition a report commissioned from The Tyndall Centre for Climate Change Research at the University of Manchester by The Co-operative Bank and Friends of the Earth last September said, the UK could achieve the necessary carbon reductions if the Government implements a major programme of action within the next 4 years. Delaying action will require much more drastic and less manageable cuts.

Even so the UK needed to achieve significant emission cuts - of around 70 per cent - within the next 30 years and that Government targets of a 60 per cent cut in emissions by 2050 are insufficient as they do not provide for enough reductions within the necessary timescale.

Therefore individuals will undoubtedly now have to take more responsibility for their actions in the future and will actively be looking for ready-made solutions to help them achieve this. CIS's Eco Insurance product provides consumers with a cost effective way to make a real positive impact on the environment backed by our competitive pricing policy.

Included within the product are the following distinctive features:

- Offsetting 20% of CO2 emissions for every vehicle insured under the Eco Insurance product through direct funding by CIS.

- Premium discounts for 'greener' cars.

- Environmental backed claims service.

Owners of those vehicles that do not qualify for the premium discount will still do their bit for climate change as CIS will agree to offset a percentage of the vehicles CO2 emissions at no extra cost to the customer.

David Neave continued, "From our annual Ethical Consumerism Report, it is apparent that more and more consumers are becoming environmentally aware and that influences what they buy, including the purchase of car insurance. From the findings of the Tyndell research it is clear that more needs to be done to redress the impact of climate change. CIS now have in place a high quality eco-friendly car insurance product, delivered by a trusted and ethically guided insurer, that will allow customers to make a difference and to take action to reduce their own carbon footprint at no extra cost to themselves".

Notes To Editors:

Below are the details of four risks where we were cheaper than all 6 competitors we compared against in November/December 2006, providing significant evidence of CIS's competitive pricing policy - also delivered through our Eco motor insurance proposition at no extra cost.

1. A 43 year old female driving a Rover 25 GSI, Hatchback with Nil no claim discount living in Durham.

2. A 31 year old female and their 32 year old spouse driving a Daihatsu Grand Move Auto, Estate with Nil no claim discount living in Altrincham.

3. A 60 year old female driving a Peugeot 306 LX, Hatchback with maximum no claim discount living in Milton Keynes.

4. A 67 year old male and their 69 year old partner driving a Rover 111 SLI, Hatchback with maximum no claim discount living in South East London.

Actual premiums (all web):

    
    Risk CIS        Allianz NU (broker) Direct Line Churchill The AA MoreThan
         (standard &
         Eco
         Insurance)
     1     GBP365    GBP915    GBP876      GBP620     GBP629   GBP555  GBP691
     2     GBP495    GBP830   No quote     GBP496     GBP536   GBP543  GBP555
     3     GBP163    GBP224    GBP330      GBP186     GBP185   GBP192  GBP261
     4     GBP223    GBP255    GBP282      GBP249     GBP236   GBP264  GBP300

Policy benefits included as standard within the Co-operative Insurance motor product and Eco motor product are:

- No claim discount for named drivers,

- Courtesy car (subject to availability),

- Europe-wide cover,

- 24-hour emergency breakdown helpline,

- Legal helpline and uninsured loss recovery - (most other insurers charge extra for such features).

For further information please contact: Duncan Bowker, Co-operative Group Press Office, Tel: +44(0)161-827-5617, e-mail : duncan.bowker@co-op.co.uk, Russ Brady, Co-operative Group Press Office, Tel : +44(0)161-827-5472, e-mail: russ.brady@co-op.co.uk