Quindell bags £150m Direct Line Group contract

Direct Line Group has signed a three-year contract with Quindell worth more than £150m.

Quindell will handle Direct Line’s credit hire agreements under the deal and is in discussions to take on other claims elements.

It won the contract from Enterprise and The Innovation Group following a competitive market review by Direct Line.

The £50m per year contract is in Quindell’s top five for turnover and top ten for profitability, chief executive and founder Rob Terry told Insurance Times. It will also ramp up the use of Quindell’s collaboration model, which it says reduces car hire durations and brings down claims costs for insurers, as well as improving Quindell’s cash flow and margins.

Quindell’s collaboration model financially incentivises the non-fault insurer to reduce the cost of claims, while Quindell also works with the at-fault insurer. It gives Quindell a guaranteed margin and profit share agreement on the lower claims cost.

Terry said: “We are very pleased to announce this significant new contract with such a major UK insurance brand as Direct Line Group. This agreement once again validates Quindell’s significant market leading model, which we believe will continue to help revolutionise the insurance industry, through a combination of innovative technology and integrated supply chain for motor insurance, stamping down the cost of claims while above all improving the customer experience for the brands that choose to partner with Quindell.”

TIG said the contract loss would not affect its financial performance. “We remain a preferred supplier of services to Enterprise in the UK market and are proud to have recently extended our contractual relationship with them,” a spokeswoman said.