Tesco life insurance prices slashed

Tesco life insurance prices are to be slashed, confounding market predictions as well as those of some providers.

Tesco life insurance rates will be cut by between two and six per cent.

The company's level term, mortgage life insurance and critical illness products will all benefit from the move.

Tesco has pointed out that due to the impact of recent new regulation and narrowing margins caused by low rates, life insurance prices had been predicted to rise.

However it claims that the way its business works has meant it has been able to rise above the difficulties.

James Yerkess, head of life insurance at Tesco, said: "A number of providers, particularly brokers, have been threatening price increases for some time.

"Yet with an efficient and customer-focused approach, we have been able to slash our rates, not raise them."