Emergency Helpline providing 24-hour access to qualified tradespeople
identified by Direct Line in the event of an emergency such as burst pipes,
storm damage, broken windows or damaged locks.
In the consumer Which? magazine independent survey of some
100 motor insurance companies in 1990, Direct Line was one of only
three companies achieving a top rating for its speed and efficiency in claims
handling. The company was proud that this position had been maintained
in subsequent years. After the Lockerbie air disaster in Scotland, Direct Line
paid out emergency aid to policy holders in less than 24 hours.
The telesales quotations and claims service were also transparent to
management via the Direct Line integrated MIS system. This reported in
real time the number of quotations made by area, by operator and the con-
version rate by operator, thus providing a clear view of performance in real
time. Moreover, operators with lower conversion success rates could be
individually counselled to improve performance. Successful operators or
units could also be rewarded via bonuses or special rewards.
The pursuit of efficiency
Direct Line was an innovative user of technology to help keep down the
cost of premiums. For example, the company only accepted payment by
credit card or direct debit. In this way payments could also be received
electronically, with the minimum of paper, which kept staff levels and,
therefore, costs to a minimum. A combined effect of the level of personal
service and low cost delivery systems meant that Direct Line, despite
product/services copiers from the traditional service industries, had con-
tinued to show substantial growth throughout the 1980s and early 1990s.
Moreover, via its integrated MIS system, the company constantly moni-
tored its customer base to identify claim abuse, extra policy marketing
opportunities and the like and adjusted premiums charged based on the
level of overall actuarial risk.
The major products of Direct Line
By 1992 Direct Line insured some 4.5 per cent of all cars in the UK and was
amongst the top five of motor insurers (out of some 600). Moreover, the
company’s swift and efficient claims service enhanced the Direct Line
image. Direct Line, apart from offering standard motor insurance, had
extended its product offer by allowing customers to add Motor Legal
Protection cover for a fixed rate fee. This meant that if a policy holder
The customer market domain: Managing relationships with buyers 123