RSA has renewed its long-running partnership with Motability Operations (the not-for-profit company which manages the Motability car scheme) for 5 more years, running from October 2013. The original partnership was announced in July 1998.
This is arguably more of a commercial fleet scheme than a traditional "affinity" arrangement, but it does represent one of the UK's largest motor insurance partnerships and covers 600,000 disabled drivers. The Motability scheme is said to account for 6% of all new cars sold in the UK each year. Policies are generally provided on a 3-year basis, but will be re-priced every 6 months.
The revised deal is on a quota share basis, with RSA retaining 20% of the premium and ceding the remainder to a captive insurer managed by Motability Operations. This is very unusual in an affinity deal, but the scheme had been making substantial losses in recent years and arguably also reflects the particular expertise of the partner.
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