Quindell lands RAC contract

Insurance outsourcing firm Quindell Portfolio has won a five-year contract with the RAC.

The contract, which Quindell claims could be the largest ever it has entered into, has the potential to address over £500m of UK auto claims costs annually, the company said.

The RAC will use Quindell’s end-to-end proposition of a complete supply chain offering for personal injury claims, medical reporting, multidisciplined rehabilitation, plus auto accident repair including vehicle hire services and other brand extension services.

The deal follows an initial pilot period, which was completed in early 2013 and resulted in an improvement of more than 50% on conversion rates.

In a statement, Quindell said that RAC has agreed to a payment profile for their financial benefit that ensures that the agreement remains cash positive on the majority of transactions for Quindell. Therefore, Quindell does not have to utilise a significant proportion of the circa £80m of additional funding recently procured to support the working capital requirements of the agreement, and the majority of these funding lines remain available to support further organic growth.

RAC commercial director Kerry Michael said: “RAC has been looking after our members and their needs for more than 115 years and our association with Quindell will enable us to continue delivering market leading propositions into the future. Together with Quindell, we are improving the customer journey for our members while driving down the cost of claims for the industry as a whole.

“Quindell’s technology and integrated outsourcing offering is market leading, and we believe offers our members and commercial partners a best-of-breed solution that will enhance their driving experience.”

Quindell chairman and group chief executive Rob Terry said: “We are delighted to announce this significant new contract with such a distinguished and respected brand as RAC. This agreement once again validates Quindell’s significant market-leading model, which we believe will revolutionise the insurance industry, through a combination of innovative technology and integrated supply chain stamping down the cost of claims while above all improving the customer experience for the brands that choose to partner with Quindell. 

“As previously stated we are delighted to announce this significant contract and look forward to announcing the details of some of our other recent significant contract wins during April in the lead up to our full-year preliminary results announcement for the year ended 31 December 2012 on 7 May 2013.”