In this newly created role Webb will be responsible for working with the business to develop policy on a broad range of issues from long-term savings and protection to financial capability.
He will oversee the public relations and public affairs activity for Royal London and act as a key spokesperson for the group.
Parliamentary rules prevent Webb from any direct lobbying activity for the first two years of his appointment.
Phil Loney, chief executive of Royal London, said: “Having debated public policy issues with Steve during his tenure as pensions minister I know that he shares Royal London's values and is a supporter of our customer-owned business model.
“His strong background in public policy and experience in government will be invaluable to Royal London as a thought leader on a wide range of financial issues affecting today's consumer, during a period when building a savings culture is near the top of the public policy agenda.
“As a mutual we are committed both to helping and enabling individuals to enjoy a secure working life and a comfortable retirement with adequate levels of protection and long-term savings.”
Webb added: “It is exciting to be taking up a key role with the UK’s leading mutual life, pensions and investment company, especially at a time of such dramatic change in the world of pensions.
“Having been involved in designing policy in areas such as automatic enrolment I am looking forward to seeing how it is implemented on the front line.
“As someone who has always wanted a better deal for pension savers, the customer-focused ethos of Royal London is a perfect fit with my priorities and I am greatly looking forward to this opportunity.”
Webb takes up his position on 9 November.
