Privilege Insurance Launches to Target High-Risk Motorists

Privilege Insurance, a new direct insurance company launched by PETER WOOD, founder of Direct Line, is set to provide competitive quotes for Britain's 6 million non-standard-risk drivers. This includes those in unusual occupations and with fast, expensive cars. Privilege will be the first direct insurer to target this area of the market, moving away from the "cherry picking" approach adopted by many insurers in recent years.

Key Takeaways:

• Privilege Insurance is a joint venture between PETER WOOD and the Royal Bank of Scotland, targeting high-risk motorists.
• The company will provide competitive quotes for non-standard-risk drivers, including those in unusual occupations and with fast, expensive cars.
• Privilege will use a different underwriting technique to offer these drivers a competitive deal, moving away from the "cherry picking" approach.
• The company may initially turn down more extreme risks, expanding its underwriting philosophy after the first few months.
• Privilege quoted the cheapest price for an 18-year-old driver of a Golf GTi, with a fully comprehensive policy costing £3,529.
• The company quoted the second-cheapest price for a 26-year-old driver of the same car, costing £885 with a £250 excess.

Statistics:

• 6 million: the number of non-standard-risk drivers in Britain.
• 3,529: the fully comprehensive policy quote from Privilege Insurance for an 18-year-old driver of a Golf GTi.
• 885: the fully comprehensive policy quote from Privilege Insurance for a 26-year-old driver of a Golf GTi.
• 6: the number of insurance companies contacted by The Sunday Times, with Privilege being the only one to provide quotes.

Sources:

• The Sunday Times, 1994.