Lloyd’s insurer will be present on all major aggregators by Q2 2011
Lloyd’s insurer Chaucer has unveiled a new strategy, under which it aims to build a UK direct motor brand with a “significant” aggregator presence.
Chaucer’s direct business currently trades via two aggregator sites and will be present on all of the major aggregators by the end of the first quarter 2011. The insurer plans to increase business written through the direct aggregator channel to £21m in 2011.
Chaucer’s UK division currently distributes private car motor products through 1,200 intermediaries, many of which trade through aggregators and call centres.
Chaucer has also boosted Syndicate 1084’s underwriting capacity to £745m from £707m to take advantage of UK motor market opportunities.
As part of its new strategy Chaucer aims to balance its exposure to catastrophe business, which is capable of delivering high returns but with high volatility, with the more consistent returns from its non-correlated and less volatile classes, notably UK motor.
The insurer contends that effective distribution is central to success in the UK motor market, with the internet changing the buying habits of customers and electronic trading driving operational effectiveness and efficiency.
In conjunction with the development of its UK direct motor presence, Chaucer said it will undertake further significant investment in its direct brand, which includes the development of our direct managing team with senior staff appointments. The additional UK Division investment that the firm intends to make into its direct business will be £2.3m in 2011.