RAC Motoring Services is planning to double the size of its claims outsourcing business over the next three years.

The ambitious target has been set by the company's managing director Gary Spellins.

“We are talking to a number of insurance companies who currently manage their claims in-house,” he said.

“We are looking to double the size of our claims operation.”

He believes the target is achievable as the claims management market, estimated to be worth £1.3bn, is expected to grow rapidly in coming years.

Spellins said the RAC intended to market its outsourcing services on the basis of providing a quality service to insurers' customers, rather than as a means of driving down insurers' costs.

“It is not a price-led proposition,” he said.

“Our claims management service will be about increasing customer satisfaction with insurers and enabling them to achieve high retention rates.”

Spellins said the company planned to use its expertise in processing emergency assistance calls in the area of insurance claims management.

The company has geared up for the challenge by investing £20m in new computer systems over the past two years.

The RAC's claims operation has recently increased its staff to more than 600, after securing the contract to manage motor claims from CGU's broker-sold policies.

This followed CGU's merger with Norwich Union.

The RAC has been managing Norwich Union's broker-sold motor claims for more than five years.

The automotive insurer has more than six million customers, including 3.4 million corporate members for its motor breakdown service and 700,000 insurance policyholders.

Last year the company had a turnover of approximately £370m.