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.