Direct Line announces ABS intention
Insurance company, Direct Line, has confirmed its aim of becoming an Alternative Business Structure (ABS) once it has completed its separation from the Royal Bank of Scotland (RBS).
The move is reportedly prompted by the market leader’s belief an ABS “could go some way to filling the gap left by the planned removal of referral fees in April 2013”.
A spokesperson for the insurer comments:
“In light of possible regulatory changes to remove dysfunctionality from the UK motor insurance market, which we support, we are looking at a variety of options including legal services to ensure we are able to sustain our competitiveness and continue to offer customers choice, great value and service.”
The proposed referral fee ban, scheduled for April 2013, is an attempt to reduce the number of fraudulent personal injury claims and, as a result, escalated motor insurance premiums.
Content correct at time of publication