22nd Jul 2021 11:08
(Alliance News) - Direct Line Insurance Group PLC has entered into a new partnership with Motability Operations Ltd, it announced on Thursday.
The partnership will see Direct Line provide insurance to the Motability Scheme, supporting its more than 600,000 customers. The Motability Scheme enables people with a disability to use their mobility allowance to lease a car, scooter, powered wheelchair or Wheelchair Accessible Vehicle.
The partnership is expected to grow Direct Line's motor customer base by around 15% to over 4.5 million.
Direct Line Chief Executive Penny James commented: "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."
The new arrangements are expected to take effect in 18 months and be for 10 years. The scheme's gross written premium is around GBP500 million per annum and will see Direct Line reinsure 80% of the risk back to Motability Operations via Motability Operations' reinsurance captive.
Direct Line shares were up 1.3% at 292.10 pence each in London on Thursday morning.
By Will Paige; [email protected]
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