RBS 2010 Annual Report Download - page 39

37RBS Group 2010
Divisional review
RBS Insurance
Gross written premiums in our international business grew 25% in Euro
terms compared to 2009, with the Italian business reporting 35% growth.
Combined, the Italian and German businesses surpassed the landmark
1 million insured vehicles at 1.1 million. Direct Line for Business also
accomplished a new landmark, growing rapidly from its launch in 2007
to reach over 250,000 customer policies. It offers insurance products
direct to small business customers, providing them with a straightforward
way to insure their firm.
We implemented pricing changes that reflect the increased risk and
frequency of bodily injury claims. To reduce this risk further, a new
‘rating engine’ was implemented in the own brands motor business.
It dramatically increases the flexibility in pricing risk, reducing the time
required to deliver new risk and pricing strategies. It will continue to be
rolled out among other products.
A pro-active programme of investment in people, processes and
technology ensured that we were ready for the introduction in April
of the Ministry of Justice’s new insurance claims handling procedure.
The reforms enable genuine personal injury claimants to receive fair
compensation more quickly and provides greater control over costs
for insurers.
In October, we sponsored an event at the Houses of Parliament to
discuss the challenging environment the UK’s ‘compensation culture’
has created for the insurance industry. We continue to work alongside
the Association of British Insurers in support of Lord Justice Jackson’s
recommendations for reforming personal injury compensation claims.
Putting customers first
Our customer satisfaction ratings remain strong. We scored 85.8% for
Sales and Service and received the same result for Claims. In October,
our commitment to the highest standards of service and behaviour was
affirmed as we signed the Aldermanbury Declaration. It sets out the
professional standards we will meet in areas including: Commitment to
Excellence; Training and Development; and standards for broking,
underwriting, claims and management procedures.
We are committed to protecting customers from the scourge of
uninsured drivers. In November, Direct Line hosted a seminar with the
industry, politicians and police to promote wider discussion about the
impact of uninsured drivers and potential measures to stop it.
Direct Line celebrated its 25th birthday in 2010. Its spirit of innovation
continued as it launched its free “On the Road” application for the
iPhone. This provides a route planner and live traffic updates to help plan
journeys. Should an accident happen, it also features an easy-to-use tool
to record and store key information and to send the details straight
through to the Direct Line claims team.
NIG extended its free Risk Aware risk management service to new
customer areas. It provides a tailored assessment of risk management
procedures and assists with the implementation of any recommended
improvements. NIG also rolled out a new mapping tool, covering the
whole of the UK, which provides underwriters with specific geographical
data on issues such as the risks of flood.
Our dedication to customers, innovative products and hard working
employees was recognised through a variety of awards in 2010. We
received three ‘Your Money’ awards, with Direct Line winning for the Best
Online Travel Insurance, Churchill for Best Pet Insurance and Green Flag
for Best Breakdown Cover. For the second consecutive year, Green Flag
received the Institute of Transport Management’s award for UK Roadside
Assistance Company of the Year. RBS Insurance’s investment in the
learning and development of its people was honoured with a prestigious
National Training Award. Our vocational training programme supports
employees in their jobs and provides the opportunity to gain
qualifications and strengthen key skills.
Refocusing for the future
We announced plans to restructure our UK office network to create new
Centres of Excellence. This will help to make better use of our properties,
lower costs and promote best practice across our functions. Fewer sites
will enhance our ability to serve customers by allowing new technology
and telephony systems to be introduced at a faster pace in the future.
The settlement agreed with the European Commission in 2009 means
that RBS must divest, at least, the controlling interest in RBS Insurance
by the end of 2013. We continue to explore the available options for
meeting this commitment in the most effective way for customers, staff
and investors. 2010 has been an important year for RBS Insurance in
refocusing the business for an independent future and we will continue
to be managed in a way that meets customer and shareholder needs.
Our travel insurance brands assisted over
12,000 customers during the Icelandic
volcanic ash cloud episode.
We are now the UK’s largest home insurer,
adding to the position that we already held
as the UK’s largest motor insurer.