Insurance distributor Freeway UK Insurance Services Limited has signed an exclusive five-year agreement with insurer Sabre Insurance Group Plc that will see the latter underwrite taxi and courier driver insurance policies issued by Freeway’s managing general agent come March.
“This is a fantastic opportunity to turbocharge growth in our small taxi book, which will contribute to the group’s profits while establishing a further degree of diversification, following our entry into the motorcycle insurance market earlier this year,” said Sabre chief executive Geoff Carter.
“The partnership builds on our core capabilities and allows us to retain our underwriting discipline while providing incremental earnings growth. We will provide a further update on our progress with Freeway at our full-year results.”
At present, taxi insurance accounts for approximately £1 million of Sabre’s total annual premium. Partnering with Freeway is expected to generate an additional annual gross written premium of around £20 million.
Meanwhile it was noted that the underwriter will not be liable for any historical policies, claims, or activities of business written previously by Freeway. Sabre will also not be paying a financial consideration to Freeway under the tie-up.
Commenting on the alliance, Freeway chief executive Paul McCracken stated: “We have ambitious growth and development plans for Freeway, both this year and into the future. We continue to set new standards in the professional driver insurance industry via market-leading technologies that put our customers first, and facilitate data-driven decision-making.
“Our new £250 million underwriting partnership with Sabre combines our expertise in pricing, underwriting, and claims handling. It enables us to continue to offer market-leading products and best-in-class service levels to our customers, while also empowering professional drivers to make informed choices for their own businesses or operations.”
McCracken’s camp has been specialising in taxi insurance for two decades.
