Under the deal, Lloyds TSB Insurance's car, home, travel and pet products will be integrated into the Tiscali web site as a key part of its money section.
The deal aims to bring a wider choice of products and instant quotes to Tiscali's online insurance offering. Tiscali hopes to see increased traffic and e-commerce as a result.
A spokesman at Lloyds TSB Insurance said: "We see this partnership as an excellent chance to combine our knowledge of the online insurance marketplace with that of one of the UK's leading ISPs."
Alex Hole, commercial director at Tiscali UK, commented: "The two-year agreement will provide a strong, varied and competitive offering for Tiscali users who are seeking competitive insurance quotes from a high-profile and trusted brand.
"Lloyds TSB Insurance products will be marketed to Tiscali's users through all of Tiscali's media channels.
"Through Lloyds TSB's screen trade.co.uk and insurance.co.uk brands, Tiscali customers can get instant quotes and a high level of choice, delivered with the Tiscali look and feel. We will continue to look for partners like Lloyds TSB Insurance, which make our Tiscali-branded services more attractive," added Hole.
Tiscali UK was launched in July 2001 following the acquisitions of Liberty Surf, World Online and LineOne. Most recently, Tiscali UK acquired Tiny Online and Gateway ISP.