Boots the Chemist has confirmed it is looking at “alternative ways” to sell its cash plan insurance products – which could include locations outside its High Street shops.
The company is currently exploring schemes with affinity groups such as sports clubs and schools to offer the products, said Boots healthcare spokesman, Kevin Johnson.
Customers can currently only purchase Boots branded health cover in-store. The polices are underwritten by Royal & SunAlliance and run by a dedicated team based in the insurer’s teleservicing centre in Bournemouth.
Johnson said that Boots the Chemist stores would remain as the leading purchase point for the cash plans but he did not rule out that in the future other options would be explored.
He agreed that customers might be able to purchase the products from other locations such as GP’s surgeries and physiotherapists. Johnson said that existing policy sales for Boots were “right on target”, although he could not reveal exact figures as the company will not be producing any sales figures for the first six months.
Boots launched a range of cash plans earlier this year and has promoted them with TV advertising. The plans cover families, pregnancy, dental, child injuries and personal accident.
Boots has said that it expects to sell 250,000 of the policies in its first year and is spending £8million on marketing and promotional costs.
Johnson said research had shown that Boots was currently reaching its target market, with females in their late 20s proving to be the main buyers of the plans.
Boots has ruled out launching a PMI product in the future, since the market is more complex and subject to inflation. “It is a fair way from Boots’ values – and if premiums were to rise, we could lose a lot of customers,” said Johnson.