RAC launches in-house insurance intermediary

By Joanna England
The Royal Automobile Club (RAC) made the move to as part of efforts to achieve managing £300m personal lines GWP by 2023...

The RAC has launched its own inhouse intermediary as part of a strategy to achieve GWP targets. Reports suggest RAC Insurance plans to exceed £300m GWP by 2023.

Already, RAC’s foray into the insurance market has proved fruitful, with more than 650,000 in-force policies in 2020. The company’s core car insurance product currently handles more than £200m GWP.

The news follows on from the RAC’s announcement last month that it plans to provide a new pay-by-mile service to its customers. The new insurance intermediary’s telematics product has been available since 30 March. Van and home insurance products are scheduled to follow in quarter two of this 2021.

Currently, RAC Insurance offers a range of motor insurance policies that include car, multi-car, learner, classic car, motorbike and van cover. It also provides other insurance products such as home, travel and business policies.

RAC technology partner

The new brokerage has appointed CDL as its technology provider while Europa Group will provide policy administration services and an RAC-branded contact centre.

Speaking about the latest initiative, Marcus Latchford, head of RAC Insurance, said the development “represents a material shift in our insurance strategy” following the business successfully running “a fully outsourced insurance operating model for many years”.

He continued, “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.”

Latchford said RACs services would be offering its users a raft of benefits. He explained, “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.”

CDL’s chief executive Nigel Phillips said the partnership with RAC prese nted the technology company with the opportunity to support RAC’s development. “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.

He continued, “We’re delighted to be working with such a long-standing brand that has constantly evolved to meet developing consumer expectations.”

Jonathan Dixon, Europa’s commercial director, added: “It’s a great accolade to the skill s 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.”


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