Cavendish Online will retain autonomy over its pricing model following its sale to Lloyds Banking Group (LBG), the banking giant has told Health & Protection.
Yesterday LBG unveiled plans to acquire Cavendish Online for £12m.
The UK protection intermediary offers hybrid direct to consumer, guided and advised life insurance, critical illness and income protection sales services.
When asked by Health & Protection whether Cavendish Online and its advisers and sales staff be incentivised to sell LBG or Scottish Widows products such as through higher commission rates, the bank said Cavendish Online will operate as a separate company within the group retaining autonomy over its pricing and business model.
A group spokesperson also said the deal will not affect Scottish Widows’ existing intermediary offering, adding the group is committed to “continuous investment in this space to improve adviser and end-customer experience, platform and user journey as well as creating good customer outcomes”.
The spokesperson confirmed that Cavendish Online will remain a whole of market intermediary firm offering its insurance broker services to customers through its existing distribution channels operating as a separate company within the group.
“For Lloyds Banking Group customers, Cavendish Online will offer guidance and advice around our existing, award winning protection products provided by Scottish Widows,” the spokesperson added.
“If they identify a need for a product which Scottish Widows does not provide then Cavendish Online source the best available cover in the market for that need.”
Health & Protection also revealed that Cavendish Online founder and managing director Ian Williams is to retire following the sale with director John Nelmes taking-up the role of head of Cavendish distribution.
