RAC Insurance has set up its own in-house insurance intermediary in an important step towards fulfilling its ambition of exceeding £300 million personal lines gross written premiums (GWP) by 2023.
RAC Telematics Car Insurance was the first product to launch on 30 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 more than £200 million GWP, the investment in the new broker will propel the insurance provider towards its target of exceeding £300 million 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, commercial director at Europa, 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.”