Proposed takeover tipped to boost heating insurance competition

Tue, 22 May 2007

Home insurance customers may like to know that an independent analyst has predicted the heating cover sector could be revitalised by a proposed takeover.

At the moment, heating protection provider Homeserve is discussing the possibility of acquiring rival Domestic & General in a £500 million deal.

Commenting on the potential linkup, Geoff Slaughter, energy product manager at financing portal uSwitch.com, has acknowledged that some home insurance policyholders are likely to be apprehensive at the prospect of two of the largest insurance providers joining forces.

Yet he attempted to allay concerns by claiming it could boost competition in the heating cover sector.

"A merger might actually be good for competition - it would create a company with enough clout to take on British Gas for its title as number one provider," he reasoned.

In related news, this week has seen customers urged to pay closer attention to their heating bills in order to ensure they do not spend too much.

According to figures from financing portal moneysupermarket.com, 61 per cent of gas customers automatically pay off their bills by direct debit.

However, since many energy companies calculate costs using outdated meter readings, it could potentially mean that many consumers are automatically paying out more than they need to for gas.

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