ANNUAL REPORT AND ACCOUNTS 2021

Deploying our new motor platform

The successful launch of a new Motor platform for our biggest brands – Direct Line, Churchill and Privilege – has improved customer experience and allows greater pricing sophistication. Being cloud-based enables the platform to connect to a greater variety of data sources, enabling us to update our pricing engines at speed.

Strengthening Partnerships

In July the Group was delighted to announce a 10-year partnership, from 2023, with Motability Operations to provide insurance to customers on the Motability Scheme. The Scheme serves over 640,000 people and is forecast to increase Motor gross written premium by around £500 million each year. The partnership will provide us with extra insight into their fleet of modern vehicles and build further scale to our expert claims management service.

Improving online customer experience

Commercial lines success

Our diversified business model means we aim to reach customers however and wherever they shop. We pride ourselves on offering SMEs tailored insurance so they have the insurance cover they need. This year:

• We continued the rollout of a new pricing and underwriting system across Commercial combined and Fleet, alongside the launch of machine learning pricing models, improving pricing accuracy
• Direct Line for Business continued to deliver double growth within the SME market, supported by 64% growth in Churchill for business
• NIG delivered the highest gross written premium growth in the last 10 years

Overall, during 2021 our Commercial business grew gross written premium by 15%.

Going green

The Group joined the Race to Zero campaign committing to set Science-Based Targets, to achieve net zero emissions by 2050. This year we started:

• Testing hydrogenated vegetable oil (HVO) in our recovery trucks
• Trialling electric spray paint booths
• A new Supply Chain Sustainability Programme

Electric made easy

The future of UK motoring is electric and in November we were delighted to launch a new electric vehicle (“EV”) offer for our Direct Line brand, aimed at making the transition to electric easy for our Motor insurance customers. It offers all new business customers access to a bundle of electric vehicle charging essentials, as well as an EV concierge service and insurance that covers batteries and charging cables. Using our agile working model, it took less than eight weeks to take the concept off the drawing board and into the market.

Promoting Diversity and Inclusion

In 2021 our Executive Committee has been transformed; for the first time ever a majority of its members are women and two members are from a minority ethnic background. Across the business we are working to drive diversity and inclusion, including this year our first ever social mobility action plan and Black inclusion report. We know there is much more to do, and were proud to be named 13th most inclusive employer in the UK.

New flagship car technology centre

To prepare for a world of rapidly changing car technology, the Group completed the build of its new tech centre in Stechford, Birmingham. The facility will develop the tools, skills and training to benefit its network, including the ability to test various ADAS (Advanced Driver Assistance Systems) calibration tools and electric vehicle repair methods. As part of one of the largest insurerowned garage networks in the UK, it will enable the Group to get to meet evolving customer repair needs particularly as the UK transitions to a green future.