Brokers face up to motor squeeze as retailers thrive

Motor insurance brokers are continuing to feel the pressure as non insurance brands announce buoyant 2004 sales.

Tesco, which claims to be the fastest growing motor insurer in the UK ever, told Insurance Age it had issued 600,000 new policies in 2004. The retailer which launched in 2000 now has 1.4 million policies in force and holds just under 8% of the car insurance market.

Allan Burns, head of insurance at Tesco said: "We have had major success through our promotions in petrol filling sales