Direct Line is an
insurance
Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to hedge ...
company based in
Bromley
Bromley is a large town in Greater London, England, within the London Borough of Bromley. It is south-east of Charing Cross, and had an estimated population of 87,889 as of 2011.
Originally part of Kent, Bromley became a market town, c ...
, England. Founded in 1985, as the country's first direct car insurance company, it has since expanded to offer a range of general insurance products. Its policies are underwritten by the regulated subsidiary UK Insurance Limited, and it is owned by the
Direct Line Group
Direct Line Insurance Group plc is a British insurance company based in the United Kingdom, formed in 2012 by the divestment of The Royal Bank of Scotland Group's (RBS) insurance division, through an initial public offering. The company owns a ...
.
Company history
Founded in
Croydon
Croydon is a large town in south London, England, south of Charing Cross. Part of the London Borough of Croydon, a local government district of Greater London. It is one of the largest commercial districts in Greater London, with an extensi ...
by
Martin Long and
Peter Wood with £20 million from the
Royal Bank of Scotland, Direct Line sold its first motor insurance policy in 1985. It was the first insurance company in the United Kingdom to underwrite using computers and sell insurance directly by telephone, thus removing the need for a broker and reducing costs.
The company was also the first insurer in the United Kingdom to open its office in the evenings and weekends, and the first to offer a twenty four hour helpline. In 1988, it started to sell home insurance. Direct Line is renowned for having transformed financial services in the United Kingdom.
[(1 March 200]
''Superbrands case studies: Direct Line''
Campaign
Campaign or The Campaign may refer to:
Types of campaigns
* Campaign, in agriculture, the period during which sugar beets are harvested and processed
*Advertising campaign, a series of advertisement messages that share a single idea and theme
* Bl ...
The company grew by advertising in the national press, television and marketing to RBS customers. It launched a long standing mascot of a red telephone on wheels in 1989, which rapidly established high levels of recall among consumers.
The mascot had altered slightly over the years; being accompanied by a red mouse on wheels to represent the company's website in 2005, which was dropped in 2020, with another re brand leaving the phone on its own once more.
In September 2014, the brand worked with
Saatchi and Saatchi
Saatchi & Saatchi is a British multinational communications and advertising agency network with 114 offices in 76 countries and over 6,500 staff. It was founded in 1970 and is currently headquartered in London. The parent company of the agency gr ...
to relaunch its advertising, which saw Hollywood actor
Harvey Keitel
Harvey Keitel ( ; born May 13, 1939) is an American actor. He is known for his portrayal of morally ambiguous and "tough guy" characters. He first rose to prominence during the New Hollywood movement, and has held a long-running association with ...
reprise his role as the character Winston Wolfe from the 1994 film ''
Pulp Fiction
''Pulp Fiction'' is a 1994 American crime film written and directed by Quentin Tarantino, who conceived it with Roger Avary.See, e.g., King (2002), pp. 185–7; ; Starring John Travolta, Samuel L. Jackson, Bruce Willis, Tim Roth, Vin ...
''. The company had one million customers after eight years by June 2003.
The company expanded with a series of new offshoots in the 1990s. In 1995, a Spanish offshoot, Linea Directa, started offering motor insurance in Spain. They expanded into travel insurance in 1996, pet insurance in 1997, and Direct Line Breakdown started offering breakdown insurance in 1998. Other global offshoots included Germany, Italy, and Japan.
Their non general insurance products umbrella Direct Line Financial services launched their first non insurance product, Direct Line Personal Loan, in 1993, the following year, they started to offer mortgages, in 1995, Direct Line Life started offering
life insurance, in 1996, they launched savings accounts and a
PEP
Pep is energy or high spirits; it may refer to:
* Pep band, an ensemble of instrumentalists
* Pep, the dog in ''Putt-Putt'' (series)
* Neilson Dairy confectionery brand
* Pep, New Mexico
* Pep, Texas
* Pep Cereal, by Kellogg
* Pep Comics, by MLJ ...
unit trust
A unit trust is a form of collective investment constituted under a trust deed.
A unit trust pools investors' money into a single fund, which is managed by a fund manager. Unit trusts offer access to a wide range of investments, and depending on ...
, and in 1998, the company started to offer pensions. The company's first website, directline.co.uk, was launched in 1997, which was later renamed directline.com in 1999.
The innovations extended into the 2000s with the launch of the first online claims registration and tracking facility in the United Kingdom for its motor insurance customers in 2001, and Home Response 24 Emergency Insurance, launching in 2003.
[Royal Bank of Scotland - Heritage - Companies - Direct Line](_blank)
RBS.com Direct Line was bought by RBS Insurance, a subsidiary of
RBS Group
NatWest Group plc is a British banking and insurance holding company, based in Edinburgh, Scotland. The group operates a wide variety of banking brands offering personal and business banking, private banking, investment banking, insurance and ...
, in June 2003.
Royal Bank of Scotland was forced to sell Direct Line as a result of European regulations that prevent companies from receiving state aid.
Direct Line floated on the London Stock Market in October 2012. The Direct Line Group owns a number of brands including
Churchill Insurance
Churchill Insurance is a British insurance company based in Bromley, London. Founded in 1989, as one of the country's first direct to customer car insurance companies, the company has expanded to offer a range of general insurance products. Sin ...
, Privilege and
Green Flag
Green Flag or Green Flag Rescue, is a British roadside assistance and vehicle recovery provider, which is part of the Direct Line Group. Formed in 1971, as the National Breakdown Recovery Club, as an alternative to the AA and RAC, it used ...
. The company made a number of tough financial decisions at the beginning of the 2010s, including abandoning some lines of business, making redundancies, and closing 14 of their 27 offices in the United Kingdom.
Services
Today, Direct Line offers a range of general insurance products including car, van, home, landlord, pet, and travel insurance as well as breakdown cover. They also offer life insurance.
The company started a new subsidiary in September 2007,
Direct Line for Business, which provides a range of business insurance products to landlords and the small business sector.
Controversy
In January 2012, Direct Line, along with sister company
Churchill Insurance
Churchill Insurance is a British insurance company based in Bromley, London. Founded in 1989, as one of the country's first direct to customer car insurance companies, the company has expanded to offer a range of general insurance products. Sin ...
, was fined £2.17m by the
FSA, after being found guilty of altering complaints files.
Awards
Direct Line has won a number of awards including:
* Financial Services Forum Awards 2016: Advertising; Customer Experience; Customer Loyalty and Retention, Judges' Special Award for Marketing Excellence.
* YourMoney.com Awards 2016: Direct Winners – Best Direct Car Insurance Provider
* Your Money Awards 2015: Direct Winners – Best Direct Car Insurance Provider
Rebranding
In Italy and Germany, Direct Line was acquired by MAPFRE Group in September 2014, and re branded to Verti in January 2017. Verti is a brand owned by MAPFRE Group, operating in Italy, Germany, Spain and the United States.
References
External links
Official website
{{NatWest Group
Royal Bank of Scotland
Companies based in the London Borough of Bromley
British companies established in 1985
Financial services companies established in 1985
Vehicle insurance
1985 establishments in England
Insurance companies of the United Kingdom