Until now, the supermarket's own-branded financial products have been underwritten by Norwich Union. However, its Asda Price Search service will enable customers to look for the best deal on car, home, travel and pet insurance.
Asda has broadened its insurance offer following internal concerns that it was unable to guarantee the best deal for every customer, which did not fit the retailer's "everyday low prices" strategy.
Price Search will be supported by a TV campaign for car insurance, which breaks in April and will promote Asda's pledge of being able to offer the cheapest premiums.
In February Asda announced it was to cut £10m from the cost of car insurance for 2005, offering consumer savings of 15%-60%. It also introduced a 10% discount for drivers applying online.
Financial services has become a key battleground for supermarkets because it offers highly lucrative returns on a comparatively small investment.
The logistics allow the operation to be run out of the financial partner, which absorbs most of the cost.
Last month it was revealed that Morrisons plans to enter the market with a credit card launch later this year.
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