Direct Line pulls out of life market
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Direct Line has pulled out of the life insurance market with immediate effect.
A notice on the company’s website states that Direct Line, which is owned by Royal Bank of Scotland, is no longer accepting new life cover, life cover with critical illness, or over 50s life cover business.
The notice says: “Direct Line Life Insurance Company is no longer accepting new applications for life insurance or life cover with critical illness. We apologise for any inconvenience this may cause.
“Existing policies remain in force in line with policy terms and conditions and the company can be contacted for any claims or administration matters relating to these policies.”
RBS Insurance director of lifestyle Paul Cowman says: “Following a strategic review of Direct Line Life, we identified that it needed considerable investment to improve its infrastructure. We explored a number of options to address the future of the business, but unfortunately none of them provided a viable solution that would benefit our colleagues, customers and stakeholders.
“Collective consultation with employee representatives has concluded and the FSA has agreed our proposal to cease writing new individual Direct Line Life and Critical Illness business. Our people have been informed of the decision and we are now in the process of consulting with the impacted individuals.”
Direct Line continues to offer private health insurance with Axa PPP Healthcare.
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Readers' comments (11)
Anonymous | 10 Aug 2011 2:07 pm
Looks like even more business for the IFA! Pity there won't be any left following the FSA initiative to benefit consumers and lower costs!
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Edward T | 10 Aug 2011 2:50 pm
.. and I would have put money on that type of business doing very well after RDR... just what do they know.....?.. :-)
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Gillian | 10 Aug 2011 2:55 pm
Timing!
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John Morgan | 10 Aug 2011 2:55 pm
I wonder if their decision is due in part to a lack of business/ profit because Life Assurance is often an "optional extra" for people and they will never buy it themselves - it has to be recommended! You have to have Car Insurance to be legal and you usually have to have Home Insurance as the mortgage lender would need their interest quoted on the Policy Schedule. Their is no legal obligation to have life cover so very few people buy it out of choice!
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Alan Lakey | 10 Aug 2011 3:07 pm
Another victory for the RDR obsessed.
Ain't life great?
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Anonymous | 10 Aug 2011 3:28 pm
Increased costs lead to bankrupty, not necessarily best advice
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Gary Cosgrove | 10 Aug 2011 3:51 pm
I wonder who is next to withdraw, I think HSBC will go down the same route as Barclays.
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Bill Wells | 10 Aug 2011 6:50 pm
Good riddance - Direct Line have been conning people for years.
If people were to do their research they would realise that the car insurance and home insurance are particularly good value either !
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Anonymous | 10 Aug 2011 6:52 pm
I think that if people knew that Direct Line was actually RBS, they would be less inclined to buy their policies - life, motor or home.
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Mark Montanana | 12 Aug 2011 2:27 pm
Interesting move, I wonder if customers would get a better deal by going directly to AXA PPP Healthcare rather than Direct Line.
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