Direct Line pulls plug on venture
Royal Bank of Scotland Insurance has admitted defeat in its efforts to launch Direct Line in the wor...
Royal Bank of Scotland Insurance has admitted defeat in its efforts to launch Direct Line in the world's largest motor market, Japan. The personal lines brand pulled out of the Japanese market last month claiming a lack of appetite for telephone-based insurance products in the country.
The company had high hopes when it teamed up with Yasuda Life to sell motor insurance in October 1999.
Direct Line spokesperson Gill Murphy explained: "We tried out our model in Japan and for a while it was successful. However, as time went on trading was not as strong as we had anticipated."
RBSI would not disclose how much the Japanese venture cost or how many policyholders it had, but PM understands the figure is around 300,000.
Direct Line has sold its share holdings in the Japanese venture to MeijiYasuda, after Meiji and Yasuda merged earlier this year. The contract has since been passed onto Nipponkoa.
However, Direct Line was quick to stress this was not symptomatic of all its overseas operations. "We saw 66% growth last year in Germany, Italy and Spain," Ms Murphy added.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@postonline.co.uk or view our subscription options here: http://subscriptions.postonline.co.uk/subscribe
You are currently unable to print this content. Please contact info@postonline.co.uk to find out more.
You are currently unable to copy this content. Please contact info@postonline.co.uk to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@postonline.co.uk
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@postonline.co.uk
More on Personal
Urban Jungle expands to offer travel insurance
Urban Jungle has launched a travel insurance offering, claiming to be the “first UK insurtech” to offer both home and travel policies.
Aviva accused of ‘greenwashing’ by campaigners over tree removal
Aviva has drawn criticism from the residents of Wivenhoe, Essex, over plans to chop down a 120-year-old oak tree to tackle nearby subsidence.
Why the law on bereavement damages is unfair and out of date
Trade Voice: Kim Harrison, president of the Association of Personal Injury Lawyers, says Scotland’s fairer system hasn’t caused disquiet from insurers and asks why England and Wales remain stuck in the past.
Big Interview: Aki Hussain, Hiscox
Aki Hussain, CEO of Hiscox Group, explains how he has accelerated the kind of innovation and created the type of culture that is essential to keeping the international insurance group in pole position in the market.
At least 7,000 buildings hit by Midlands floods
At least 7,000 buildings have been affected by flooding across the East Midlands earlier this week, according to satellite monitoring firm Iceye.
Insurethebox ceases offering renewals or policies
Insurance Post has learned that Insurethebox, a telematics brand within Aioi Nissay Dowa, has informed existing customers that their policies will not be renewed.
Impact of LA wildfires on insurers laid bare
As insurers brace for billions of dollars of losses due to the damage done by the Los Angeles wildfires, experts have warned it could take years to rebuild the homes of Hollywood stars.
What Labour must do to make social care insurance work
Editor’s View: As the Labour government turns to insurance to solve the UK’s social care funding crisis, Emma Ann Hughes outlines what health secretary Wes Streeting needs to do to convince the sector’s chiefs that creating cover will be good rather than detrimental for the industry’s health.