Direct Line Insurance Group (DLG) has partnered with Motability Operations to provide insurance coverage to the latter’s Motability Scheme for 10 years.
The programme provides wheelchair-accessible vehicles to over 600,000 customers, growing DLG’s motor client base to over 4.5 million in total.
The company reinsures a majority of the risk through a reinsurance captive, MO Reinsurance, whose net exposure is contained by the placement of a structured reinsurance programme into the reinsurance market.
In the partnership, Motability Operations will benefit from DLG’s investments in vehicle repair, customer service and digital capabilities.
The partnership will come into force in 18 months’ time and will span a decade, with the scheme’s gross written premium at around £500 million per annum.
Similar to the current framework, DLG will reinsure 80 per cent of the risk back to Motability Operations through the MO Reinsurance captive.
Penny James, CEO of DLG, comments: “I am delighted that we are partnering with Motability Operations whose work 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,” she adds.
Andrew Miller, CEO of Motability Operations, adds: “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.”
