Coles Financial Services has introduced landlord cover backed by IAG-owned WFI Insurance.

“Coles landlord insurance was launched in August as part of our ongoing focus on delivering great-value insurance products to meet our customer’s needs,” a spokesman told insuranceNEWS.com.au.

The company recently advertised the new offering, and prospective clients can now submit online applications to obtain quotes.

“We believe landlord insurance doesn’t need to be complicated or expensive, which is why we offer real-quality, great-value insurance that costs less,” Coles says in its product disclosure statement.

“Only [WFI] as insurer can issue, vary or cancel Coles landlord insurance policies. [WFI] will also assess and pay claims.”

Coles’ foray into landlord insurance underlines the growing challenge facing brokers, who have traditionally dominated distribution in the segment.

EBM Insurance Brokers expects “short-term disruption” to current providers but is confident it can fend off the challenge from new players including Coles.

“Over the years we have seen a number of companies enter this area of insurance and, in some cases, they have fallen out of this market within a few years,” the broker’s EGM for RentCover Sharon Fox-Slater told insuranceNEWS.com.au.

“We certainly do not anticipate any long-term impact on our business.”

She says EBM’s focus on building strong ties with clients provides an edge over new challengers.

“In the landlord space we have set ourselves up as an industry leader and are quite specific in the way we work and with the relationships we form,” Ms Fox-Slater said.

“Unless something quite major occurs, it is quite difficult to disrupt long, meaningful relationships where there is a good level of trust.”