The supermarket giant already offers general insurance, life protection, savings and other financial services to customers, but in offering two ‘simple’ health insurance products, Tesco will be hoping to tap into an industry worth an estimated £3.2 billion a year.
Customers at 1,000 Tesco stores will be able to pick up health insurance leaflets alongside the weekly grocery shop.
The documents will outline two levels of cover – premium and core – designed in conjunction with AXA PPP healthcare.
Core cover will provide private medical insurance for in-patient and day-patient care, cover for out-patient scans and for cancer treatment (radiotherapy and chemotherapy).
Its more expensive premium insurance will include £1,000 for additional out-patient benefits every year.
Tesco Personal Finance claims the new products are offered at prices up to 32 per cent lower than comparable providers.
Customers can also build up a no-claims discount of up to 55 per cent over four years, it added.
The products can be bought with no medical questions for people under the age of 76, making it easier to purchase, according to Tesco.
Jeremy Sutton, Head of Savings and Investments at Tesco Personal Finance, said: ‘Our customer research suggests that perceived high prices, complicated products and complex medical questions have been major stumbling blocks to buying health insurance.
‘We aim to change that by offering products that are simple, good value and easy to buy. Our approach will open up the market to people who want the choice that health insurance offers.’
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