Motability Operations

Motability Operations is pleased to announce that it has renewed its contract with RSA to provide motor insurance to the Motability Scheme. This new contract extends the long-term relationship between the two companies and continues the strong, sustainable partnership between RSA and Motability Operations. The new contract took effect from 1 October 2013 for an initial five years. Under the new arrangements RSA will continue as insurer, but will share premium exposure with Motability Operations via Motability Operations' reinsurance captive. The captive's net exposure will then be contained through the placement of a conservatively structured reinsurance programme into the reinsurance market. RSA will continue to provide the full range of customer-facing activities through its dedicated Motability unit in Liverpool, ensuring seamless continuity of service for customers. The new insurance arrangements with RSA are common for large fleets and will deliver significant benefits to the Scheme: Customer Service: RSA have been the insurance suppliers to the Scheme for many years and the new deal will ensure continuity of our customers' 'worry free' claims management experience for many more years into the future. There will be no change visible to our customers. Financial: The financial model that will underpin the new arrangements will bring with it significant financial benefits to the Scheme and so further support the sustainability and affordability of our offering to customers. Supply Risk: Under the new contractual arrangements, there will be a conservatively structured reinsurance programme that will spread insurance supply amongst a number of highly rated organisations and in so doing diversify risk and ensure stability of insurance provision into the future.