Direct Line and Motability

Direct Line Insurance Group Plc (DLG) is poised to grow its motor customer base by about 15% by sealing a deal with Motability Operations Ltd, the name behind the Motability Scheme which is currently partnered with RSA Insurance Group.

In a release, DLG noted that the scheme’s gross written premium stands at approximately £500 million per annum. Similar to the current arrangements with RSA, DLG will be reinsuring 80% of the risk back to Motability Operations via the latter’s reinsurance captive.

Meanwhile Motability Operations, in its own announcement, said the new partnership will take effect circa 18 months from July 22 for an initial 10 years. It added that DLG intends to provide the existing customer-facing activities through the continued use of the dedicated unit in Liverpool.

“I am delighted that we are partnering with Motability Operations whose work so aligns with our purpose of helping people carry on with their lives, giving them peace of mind now and in the future,” commented DLG chief executive Penny James.

“Our digital capabilities and strength in vehicle repair, combined with Motability Operations’ fleet of modern vehicles, means together we are ideally placed to deliver a first-class service at a time of rapidly changing motor technology. We look forward to welcoming the colleagues from Liverpool who will be joining us to deliver that exemplary customer experience.”

By providing insurance to the Motability Scheme, DLG will be supporting an additional 600,000 customers and furthering the scale of the Bromley-headquartered group’s claims management service.

Motability Operations CEO Andrew Miller, meanwhile, stated: “As well as future-proofing our service, the new insurance proposition will offer the potential to grow the scheme and provide increased flexibility to customers. We are confident these arrangements with DLG position us well to support the continued delivery of worry-free motoring and value for money to our customers.

“I would like to thank the team at RSA for their ongoing support and commitment to the Motability Scheme as we transition to the new arrangements.”

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