Press release -
RAC Insurance sets up in-house broker as part of mission to top £300m personal lines GWP by 2023
RAC Insurance is today announcing it has set up its own in-house insurance intermediary in an important step towards fulfilling its ambition of exceeding £300m personal lines gross written premiums (GWP) by 2023.
RAC Telematics Car Insurance was the first product to launch on 30th March, with new Van and Home Insurance products to follow in Q2.
Marcus Latchford, head of RAC Insurance, said: “Having run a fully outsourced insurance operating model for these products for many years, this represents a material shift in our insurance strategy. By setting up our own broker and taking direct control of key parts of the value chain, we now have far greater ability to differentiate our propositions and pricing to unlock the significant growth potential we see for RAC in these markets.
“Innovation in pricing and data are central to our plans for the new broker. By developing our own pricing models and working directly with insurer partners, we’re able to utilise the RAC’s wealth of unique data assets to improve risk selection and offer customers much more competitive prices.
“We will also benefit from a digital-first operating ethos with simpler, more intuitive journeys that are optimised for customers purchasing online and via the aggregator channel, as well as a new self-service centre enabling customers to better manage their policies online.”
Alongside the RAC’s separate plans for continued growth in its core car insurance product, which is already over £200m GWP, the investment in the new broker will propel RAC towards its target of exceeding £300m personal lines GWP in two years’ time.
In setting up the new broker the RAC has appointed CDL as its technology provider, while Europa Group will provide policy administration services and an RAC-branded contact centre.
CDL chief executive Nigel Phillips said: “CDL’s investment in game-changing platforms for data insight, product personalisation and customer engagement, combined with our track record in supporting high volume retail operations, means that our insurance ecosystem offers the perfect fit for the RAC as it targets growth. We’re delighted to be working with such a long-standing brand that has constantly evolved to meet developing consumer expectations.”
Jonathan Dixon, Europa commercial director, said: “It’s a great accolade to the skills of our people and our operational excellence that Europa has been selected to be the RAC’s administrative partner. Being responsible for the RAC’s customers is a huge endorsement of our capabilities. We are committed to making this a long and very successful relationship.”
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About the RAC
The RAC provides complete peace of mind to 12m UK private and business drivers, whatever their motoring needs. Its services include:
- Breakdown assistance. Its highly-skilled, 1,600-strong branded patrol workforce attends more than two million breakdowns every year, fixing on average four out of five vehicles at the roadside. The RAC’s patrol fleet is one of the most advanced in the UK, and was the first to roll out both an All-Wheels-Up recovery system, allowing the vast majority of vehicles to be recovered from a single patrol van, and EV Boost mobile electric vehicle charging units
- Insurance. The RAC is a top-five car insurance broker having surpassed the 500,000 policies-in-force milestone in 2018. It also offers ‘black box’ telematics policies, as well as home and travel insurance
- Other motoring services. The RAC leads in the development of new solutions for business, fleets, electric vehicles and future car technology. Its additional products and services include a personal loans offering, a used car buying website, vehicle inspections and checks, legal services or up-to-the-minute traffic and travel information. It also has a network of Approved Dealers and Approved Garages which combine the trust of RAC brand with local service and convenience
The RAC also works to support the interests of its members and UK drivers on the most important motoring issues which it identifies via the annual RAC Report on Motoring and the RAC Opinion Panel. The Report on Motoring is the longest running analysis of driver opinion in the UK having been published every year since 1989.
For more information about the RAC, visit the RAC website.