Quindell lands £120m insurance services contract

Insurance technology firm Quindell Portfolio Plc has won a contract worth £120m to provide services to the policyholders of more than half of the top 10 UK insurers.

Quindell, which specialises in software, consultancy and technology enabled outsourcing to the insurance, telecommunications and related sectors, will provide the services through one of the UK’s largest insurance intermediaries up to February 2015.

The services, which include legal services, medical reporting, rehabilitation, accident management, credit hire, replacement vehicles and credit repair, have been agreed with the unnamed intermediary through a combination of the group’s own central sales activities and those of the recent acquisitions.

Based on the agreed minimum proportion of the intermediary’s business to be run through the group together with the historic and expected transaction volumes, and assuming weather and general market conditions for motor claims remain in line with the downturn experienced in 2011, the group estimates the value of services provided by the group to the intermediary will contribute approximately £120m to group revenue over the next three years.

Quindell chief executive Rob Terry said: “We are delighted to have concluded this deal that we see as an excellent example of the validation of Quindell’s strategy for lowering the cost of claim for the UK insurance industry whilst operating ethically, protecting consumer rights and delivering service excellence.

“This contract win, which is one of a number we hope to announce this year, is one of the clearest signs yet of the progress we have made in proving our ability to win long term contracts of significant value with the largest blue chip insurance sector providers during this period of significant change for the insurance industry.

“The fact that we have been chosen after extensive due diligence and that we shall now be demonstrating the value of our combined proposition to more than half of the UK’s top ten insurers via the contract win announced today provides the group with further confidence in its ability to close additional significant business with a number of these insurers directly within the second half of 2012.”