Is Direct Line most competitive insurer?
August 7, 2007
Following praise for its competitiveness in the Deloitte Quarterly Motor Insurance Market Report, Direct Line is now being criticized over claims that it is one of the most competitive car insurance companies in the UK.
The insurance giant has been making the claims since the publication of the Deloitte Quarterly Motor Insurance Market Report, which showed that in over a quarter of hypothetical cases studies Direct Line gave one of the three cheapest quotes.
However, according to officials from confused.com, the insurance specialists, this does not make the company the most competitive, and that the report also showed that Direct Line was the most competitive insurer in just 8% of cases. According to marketing material that has been released by Direct Line since the quarterly report came out, the quarterly report ‘has shown that Direct Line is the UK’s most competitive major insurer’.
This is a claim that has been attacked by officials from confused.com, and the insurance specialist went on to state that the quarterly report did not include quotes from what they considered to be some of the most competitive insurance companies on the market.
One official from Confused stated: ‘In publicising this report, Direct Line is highlighting the fact that over 90% of customers, and perhaps more, will find cheaper car insurance with other providers. What’s more, if this report covered 100% of the insurance market, Direct Line would undoubtedly fall below its current 8% for competitiveness. What better argument is there for using a price comparison site? We’ve no doubt that for certain types of risk Direct Line may well be competitive, however how would anyone know if they refuse to allow their prices to be compared against the rest of the market?’
Alan Wright
7th August 2007
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