Direct Line Shifts Strategy to Sell Own-Brand Policies on Price Comparison Websites

Direct Line, one of Britain’s largest insurers, is shaking up its strategy by announcing plans to sell its own-brand policies on price comparison websites for the first time. This move marks a significant shift for the company, which has traditionally focused on direct customer interactions rather than utilizing third-party platforms like Money Supermarket and Confused.

The decision comes as Direct Line’s new chief executive, Adam Winslow, acknowledges the growing dominance of price comparison websites in the insurance market. Winslow emphasized the importance of winning on these platforms, citing their increasing share of new business over the past five years.

In a bid to differentiate its offerings on comparison sites, Direct Line plans to launch bespoke products tailored for this channel. The company’s other brands, including Churchill, Privilege, Darwin, and By Miles, already leverage these platforms.

This strategic shift is part of a broader plan to cut costs by £100 million annually, which may result in job cuts as the company becomes more digitally focused. Winslow highlighted the need for a different resource profile, potentially leading to a reduction in workforce.

Direct Line has been navigating a challenging period, marked by leadership changes and a rejected takeover bid. Winslow aims to refocus the business on core areas such as home and commercial insurance while streamlining operations in other areas.

Investors responded positively to the news, with Direct Line’s shares rising 3.3% following the announcement. Analysts view this move as a significant change for the company, aligning with the industry trend of consumers increasingly turning to comparison sites for insurance purchases.

Overall, Direct Line’s decision to embrace price comparison websites reflects a strategic pivot aimed at staying competitive in a rapidly evolving insurance market.