Home Estate Planning Direct Line to put flagship brand on price comparison sites for the first time

Direct Line to put flagship brand on price comparison sites for the first time

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Direct Line will list its signature brand on price comparison sites for the first time, having held off from doing so for years.

The decision from insurance giant, which also owns Churchill and Green Flag, is one of the most consequential to come from a root and branch strategy review announced by its new CEO Adam Winslow alongside its full year results in March.

It had held off being on the comparison websites like Compare the Market and Money Supermarket, arguing it would lose its direct relationship with customers.

The sites also take a commission on every policy signed through them, which the FTSE 250 insurer may also have wanted to avoid.

The decision is the latest attempt from Winslow, whose predecessor was forced to step down in January, to turn the company around after its valuation plummeted off the back of a gristly two years for much of the insurance market.

A spate of bad weather events combined with rising costs across both motor and home insurers left much of the sector reeling as payouts drastically outstripped policyholders’ premiums.

The firm also shrugged off a multi-billiion pound takeover attempt from Belgian rival Ageas earlier this year, dubbing it “highly opportunistic”.

Russ Mould, investment director at AJ Bell, said: “Direct Line is finally caving in and putting its motor insurance policies on price comparison sites. This a major change for the business and a significant event.

“General insurance is a highly competitive market and unless a provider is willing to accept skinny margins by being the cheapest, they run the risk of being further down the rankings of a comparison site than some people would look when scrolling for deals.

Winslow has also decided to simplify the focus of the Direct Line stable, doubling down on its core motor, home and commercial insurance lines, and shifting away from its smaller pet and travel lines.

Its Green Flag breakdown recovery service would also be unaffected.

The group’s shares were flat on the update.

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