Tesco Bank has withdrawn its car insurance services from the Isle of Man, affecting 346 customers.

It says this follows underwriting changes the company has made to its products.

Of those home and car insurance customers affected, 262 have already been contacted regarding the issue.

Customers are being contacted 45 days before renewal (instead of the standard 27 days) to allow additional time to make alternative arrangements.

The Department for Enterprise explained it hadn’t spoken to Tesco Bank about this change.

A spokesperson said: ‘The Department for Enterprise is aware of the decision by Tesco Bank to withdraw car insurance services from the Isle of Man, however has not had any direct dialogue with them regarding this.

‘The department would like to reassure local residents that there are a large number of experienced local brokers who offer a range of insurance products, including general insurance such as motor and household.

‘For residents, choosing to procure insurance cover locally can often offer added benefits should they need to make a claim, such as making the process more straightforward for customers.’

Tesco Bank is also reassuring residents that a number of alternative insurance providers are available in the Isle of Man.

It added: ‘Earlier this year Tesco Bank stopped writing new business for home and motor insurance in the Isle of Man, including renewals to existing customers.

‘This followed underwriting changes we’ve made to our products.

‘Existing customers have been provided with additional advance warning (45 days before renewal) to allow time to find an alternative insurer.

‘The majority of our customers have been contacted in recent months and we apologise for any inconvenience caused.’

Tesco Bank said the decision was ‘unrelated’ to its exit from the credit card market in the island as announced earlier this year.

Following one of its regular reviews, the bank sent letters to customers stating that it would be closing all Isle of Man accounts.

The closure date was extended by six months for the around 1,200 credit card customers after the DfE requested for the bank to explain the rationale behind its decision to write the existing island customers.

A number of banking groups in the Isle of Man do continue to provide credit cards to island residents.