Insurer considers ways of boosting revenue in motorcycle market
Direct Line is to boost a falling market share and combat softening rates in motor by developing a motorcycle insurance offering next year.
Market sources said the Royal Bank of Scotland-owned direct insurer was considering a number of options including creating its own product or selling leads to its sister company, commercial lines specialist NIG.
A market source said: "Direct Line is looking at a number of options to bolster revenue through motorcycle insurance, including drawing on the experience in the Royal Bank of Scotland Insurance (RBSI) group to develop its own product."
RBSI also owns motorcycle broker Devitt and sources said that another possibility being looked at is selling the motorcycle inquiries that come into the Direct Line call centres onto Devitt.
Another source said: "They have lost market share in motor over the past 12 months and are keen to develop niche areas to bolster volume.
"One of the areas under discussion is motorcycle insurance, though no final decision has been made on what direction this will take."
Direct Line has been linked with a move into motorcycle insurance before, however with the addition of Churchill, NIG and Devitt to the RBSI group, the insurer is now considered to have the expertise to tackle the market.
Direct Line declined to comment.