Direct Line Insurance Group has announced that it will enter into a new partnership with Motability Operations Ltd to provide insurance to its motability scheme, supporting its more than 600,000 customers.
Direct Line said the partnership will allow motability operations’ customers to benefit from the investments Direct Line Group has made in “vehicle repair and customer service, including its strong digital capabilities”.
Together with top quartile indemnity control, Direct Line Group will support Motability Operations’ objective to provide “market leading customer experience and value”.
The new arrangements are expected to take effect in approximately 18 months and be for 10 years.
The scheme’s gross written premium is approximately £500m per annum and, similar to Motability Operations’ current structure, Direct Line Group will reinsure 80% of the risk back to Motability Operations via Motability Operations’ reinsurance captive.
Penny James, chief executive officer at Direct Line Group, said:”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.
“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.”