Legal & General has agreed a single-tie distribution deal with Tenant Shop, the UK tenant concierge service”, to provide its customers with access to its financial protection products.
As part of the deal, Tenant Shop will offer renters L&G’s life insurance, critical illness cover, income protection and the provider’s newly-launched Rental Protection Plan.
The companies said in a statement that the deal offers letting agents the ability to “significantly” increase their revenue without they themselves being regulated by the Financial Conduct Authority as Tenant Shop itself is a regulated company.
Tenant Shop serves over 10% of the private rental sector in the UK, while L&G has invested heavily in the rental sector and operates a significant Build to Rent business.
Craig Brown, Director, Intermediary, at Legal & General Insurance, said that nearly a quarter of UK households will be renting by 2023 and the protection needs of these families will need to be met by products and solutions specifically designed for them.
He said: “First-time buyers usually receive a protection ‘nudge’ when they seek mortgage advice, but most renters do not benefit from the same prompt. This leaves tenants facing a greater risk of vulnerability due to unforeseen circumstances.
“We believe that tenants are an underserved group in the protection market and we want to better address the needs of tenants through relevant and tailored propositions.”