A leading insurance intermediary has agreed a £120m contract with the proposed alternative business structure (ABS) being put together by Quindell Portfolio.
Quindell is awaiting Solicitors Regulation Authority approval for its acquisition of Liverpool law firm Silverbeck Rymer as part of an end-to-end motor claims outsourcing proposition for insurers.
It announced yesterday that it has won a contract with one of the UK’s largest, albeit unnamed, insurance intermediaries, to provide a broad range of services to policyholders of more than half of the top ten UK insurers. They include legal services, medical reporting, rehabilitation, accident management, credit hire, replacement vehicles and credit repair.
Quindell estimates that the contract will be worth £120m in revenues over the next three years.
In a statement Quindell said: “It is now generally recognised by the major outsource providers that in order to be able to secure long-term business during this period of significant change within the UK general insurance market, it is essential for companies to offer ABSs that provide a combination of service propositions, including those necessary to address personal injury, that can still operate post the banning of referral fees.
“Traditional loose partnership approaches between the various supply chain entities are no longer credible to the major insurance sector providers as the referral fees that underpin these partnerships have either been banned or are under challenge from the UK government and cannot be relied upon to facilitate long-term relationships.”
Chairman and chief executive Rob Terry said: “We are delighted to have concluded this deal that we see as an excellent example of the validation of Quindell’s strategy for lowering the cost of claim for the UK insurance industry whilst operating ethically, protecting consumer rights and delivering service excellence.
“This contract win, which is one of a number we hope to announce this year, is one of the clearest signs yet of the progress we have made in proving our ability to win long-term contracts of significant value with the largest blue chip insurance sector providers during this period of significant change for the insurance industry.
“The fact that we have been chosen after extensive due diligence and that we shall now be demonstrating the value of our combined proposition to more than half of the UK’s top ten insurers via the contract win announced today provides the Group with further confidence in its ability to close additional significant business with a number of these insurers directly within the second half of 2012.”