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Daily Insurance Industry News
Friday 25th of May 2018
January 20, 2009

RAC adopts panel approach to car insurance

by David Masters

Story link: RAC adopts panel approach to car insurance

Motoring group the RAC is able to offer more competitive car insurance deals after changing its distribution model from direct proposition to an affinity partnership.

Previously RAC car insurance was solely underwritten by its owner, Norwich Union.

Now, however, RAC has signed a contract with affinity specialist Junction.

Junction will run a panel of up to nine insurers to underwrite RAC polices. Three insurers, AXA, Fortis, and Chaucer, are already on the panel, with a further six expected to join by the end of January.

This change of operating model will allow RAC to compete more effectively with rival car insurance providers.

Using the panel of insurers, the RAC will be able to provide a higher proportion of competitive quotes than under its previous model, when Norwich Union was its only underwriter.

As a trusted brand, and with nine million roadside assistance customers, competitive pricing from RAC could make it a lead player in the car insurance market.

Saj Arshad, director of RAC membership said: “The RAC brand is recognised for its motoring expertise and ability to provide the right solution for all motorists.

“Junction’s integration with this existing operation will create a brand new business model that retains and builds on that excellent experience and knowledge.”

Peter Thompson, Junction’s managing director, said: “RAC is probably the UK’s most powerful motoring brand, with a heritage of 111 years and a very loyal customer base.

The trust that people have for the brand is unrivalled and presents a huge opportunity for growth.”

In addition to running an underwriting panel for RAC, Junction provides a similar service to the motor insurance accounts of M&S, the Post Office, and HSBC.

 

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