Woolworths says it plans to double the number of insurance policies it sells this financial year, following strong growth in the previous 12 months.

“Our whole portfolio has seen… growth but our car and pet products are growing the fastest, selling double the number of policies when compared with the rest of our portfolio,” Head of Woolworths Insurance Chris Cramond told insuranceNEWS.com.au.

The company launched its pet and life insurance products in September 2011, followed by car and travel in August last year and home and contents last November.

Car cover sales are growing despite an “extremely competitive” market, with Woolworths offering fuel discounts and loyalty benefits if customers hold multiple policies.

“Woolworths car insurance offers a real challenge to the bigger players,” Mr Cramond said.

“Our customers are managing their household budgets more closely than ever, so being able to save money on a regular expense such as petrol is a very compelling offer.” 

Pet insurance offers growth potential given the high treatment costs for animals and the current low level of take-up.

“Only 5-6% of Australian cat and dog owners have pet insurance, which is relatively low penetration,” Mr Cramond said.

This fiscal year Woolworths aims to increase sales from its current portfolio, following the launch of three products in 2012/13.

It says there are no plans to expand the insurance business to New Zealand supermarkets.

The company declined to give specific figures for policies sold or customer numbers in the past financial year.

Rival supermarket chain Coles moved into insurance with trials of house and car cover in Tasmanian stores in 2009, followed by a national rollout in 2010.

Mr Cramond says Australians pay too much for insurance and Woolworths is providing competition in a market traditionally dominated by a few established players.

Customers are happy to buy from supermarkets, he says. “The rate of growth we are experiencing… does not suggest any reservations about our participation in this market.”

Woolworths life insurance is underwritten by Swiss Re, while Hollard underwrites all other products.