Supermarket giant Woolworths has followed rival retailer Coles into the insurance market in a new partnership with Swiss Re and Hollard Insurance.

Woolworths Head of Insurance George Hughes says the company will offer “simple, convenient and affordable” products, starting with pet and life insurance.

Under the agreement Hollard will underwrite general insurance products, with Swiss Re providing reinsurance support. Swiss Re will underwrite the life insurance products, with Hollard providing distribution and call centre services.

Hollard Insurance MD Richard Enthoven told insuranceNEWS.com.au a “full set of end-to-end products that suit the Woolworths client base” will be progressively rolled out.

“The emphasis will be on value more than price,” he said.

Woolworths is also offering customers the chance to earn extra Qantas frequent flyer points when signing up for life and pet insurance.

The life policies will offer cover between $100,000 and $1.5 million, depending on age and income, from $1.42 a week, while the pet insurance product will cover up to 80% of eligible veterinarian bills for domestic cats and dogs.

Mr Hughes agrees the Woolworths products won’t always be the cheapest in the market.

“We all know that cheap doesn’t necessarily mean great value for money, and it’s evident that all too often cheap insurance policies don’t deliver,” he said. “But we are confident we can offer fantastic value for money on a comparable model.”

Mr Enthoven, whose privately owned company has been operating in Australia for the past 10 years, says the Woolworths partnership “is the single largest untapped insurance opportunity in Australia”.

“We have carefully built our business for over 25 years to support insurance entrepreneurs, from underwriting agencies and owner-managed brokers to providing white label products and distribution solutions for medium and large-sized corporates,” he said.

“We see this as confirmation of our steady ascension to the top ranks of the Australian insurance industry.”