RAC Legal & Motor Claims

RAC LEGAL & MOTOR CLAIMS SERVICES

Prepared for Towergate Insurance

RAC and Towergate: working in partnership to create an enhanced customer proposition for LEI, FNOL and Motor Claims Management.

Further to our recent discussions, we are offering Towergate Insurance RAC legal and accident management services for your consideration:

Phase 1: A proposal to replace existing private and commercial vehicle LEI provision and FNOL for Towergate private car customers. Phase 2: Options for an end-to-end Motor Claims Management proposition for all Towergate motor customers

1

2

Phased implementation approach We are aware you have one provider for private and commercial vehicle LEI and they also provide FNOL for your private car customers. With this in mind we are proposing a two- phased approach to the transition of your services to RAC. Phase 1 To consider RAC as a direct replacement for your existing provider for motor LEI and FNOL. Phase 2 To work with you as part of a wider Towergate project team to help support and shape an end-to-end motor claims offering for a seamless customer journey.

, Benefits for Towergate:

Building on our partnership to date RAC have enjoyed a successful relationship with Towergate for a number of years, helping to develop your insurance and group breakdown propositions and providing your HGV LEI product. We understand you are reviewing your motor claims and motor LEI provision and exploring the available options to receive these services from a single supplier. Building on our existing partnership, this document details how RAC can extend the range of services Towergate receive from us by providing additional Legal Services and Motor Claims Services.

Expanded Legal Services We are offering a motor Legal

Expenses Insurance product that is an improvement on your existing cover providing significant benefits for your customers. RAC already provides legal advisory services for brokers, insurers and bank customers together with our own membership base. We have a team of in-house legal specialists to provide this service and last year took 30,000 calls. Motor Claims Management RAC deliver services across FNOL, repair deployment and TP intervention to a full end-to-end outsourced accident and network management. We offer these through a modular approach to meet the differing requirements of our partners.

The use of our trusted brand to deliver great customer service Enhanced Legal cover for your LEI policyholders underwritten by RAC Partnering with a business that understands and will support your vision to provide a consistent motor claims journey for all your customers Improved retention and enhanced add-on rates

Phase 1 RAC Legal and FNOL Services RAC provide a full range of legal including legal advice helplines and claims services. We also provide FNOL as part of a wider range of modular Motor Claims Services. To ensure a smooth transition to RAC, we are able to offer the new private and commercial motor LEI products and private motor FNOL services from May 2018. services in addition to Legal Expenses Insurance (LEI),

Motor Legal Expenses Insurance

How do we compare to your existing LEI provider?

RAC’s LEI policies are underwritten in-house by RAC Insurance Ltd. We have an experienced team of underwriters and experts who create and develop products and propositions, ensuring we have the capability to provide bespoke solutions for our corporate partners. As RAC is the underwriter, we can provide LEI cover direct to Towergate Insurance, with no intermediary company and can cater for all vehicle types from standard private car to more niche sectors like young drivers or HGV drivers. RAC also provide a ‘pay on use’ service for fleet customers who do not have LEI cover. This can benefit Towergate’s fleet customers, and is provided either on a flat fee or a percentage amount recovered per claim basis. For Private car customers, RAC will manage FNOL and Uninsured Loss Recovery (ULR) claims in-house, meaning that we have full control over the whole claims process. As there are no handoffs to external providers, Towergate Insurance customers will benefit from a smooth customer journey.

RAC’s Motor Legal Expenses Insurance for Towergate Towergate’s current HGV LEI product developed with RAC has resulted in a market-leading motor LEI product with additional cover such as:

Areas of cover

RAC Towergate product P Includes non-RTAs

Lawshield Towergate product

Uninsured Loss Recovery (ULR) / Personal Injury (PI)

O RTAs only

P All passengers covered

O Passengers - immediate family members

Non-RTA ULR Europe-wide cover, including non-EU nations Access to RAC’s Motoring Advice Helpline and Legal Advice Helpline Licensing disputes - Cover for representation when licence is at risk Travel protection - Cover for the cost of transportation of a vehicle’s occupants or alternative accommodation following an accident, attempted theft, fire or vandalism

Motor Prosecution Defence (MPD)

P Pleas in mitigation when pleading guilty

O Unknown

Indemnity - ULR Indemnity - MPD

P £100,000

P £100,000 P £100,000 P £50,000

P £10,000 (ability to review) P £10,000 (ability to review)

Indemnity - Motor Contract Disputes (MCD) Legal & Motoring advice Additional areas of cover Licensing disputes

P RAC’s Motoring & Legal Advice Helplines

O Unknown

P Cover for representation when licence at risk P Arrange collection & repair of vehicle P Offer replacement vehicle on credit hire basis P Transportation / alternative accommoda- tion following accident, attempted theft, fire or vandalism

O No cover

Post - accident assistance

O No cover O No cover

Travel protection

O No cover

,

RAC wish to build on the success of our HGV LEI product and become the sole LEI provider for Towergate. Offering:

a a a

Higher cover levels One provider A recognised brand

Uninsured Loss Recovery (ULR)

Led by a management team with extensive experience in insurance, motor claims and uninsured loss recovery, our teams provide an extremely efficient ULR service. We work closely with our partners to ensure we meet requirements, understand processes and quickly address any potential issues. Our approach to claims handling and working with our corporate partners ensures that our solution includes

Claims falling outside this ‘fast track’ approach (for example, with complex issues such as liability disputes) will be passed to experienced specialist handlers. This approach means we deliver the best and most efficient service possible. We’ve also introduced a number of market leading innovations, including: › › Quick settlement solutions for excess recovery and repairs › › Dispensing with detailed claim forms. We only ask for forms when absolutely necessary, such as liability disputes and loss of earnings claims

‘fast track’ claims process

RAC claims handlers will always proactively pursue the customers’ losses following a strict three step approach:

Losses sent to the insurance company

1

the following capabilities: › › Notification of claims

Our litigation service will be supported by Lyons Davidson Solicitors.

Notice of intention to issue court proceedings sent, to give the ‘at fault’ party one last chance to pay

2

electronically, by email or by phone

› › Bespoke contact strategy so we can adapt our service to suit your own FNOL process, whether you are utilising:

File passed to solicitors to issue proceedings

3

- RAC’s FNOL services - Towergate Insurance’s own claims services - Customers contacting RAC Legal Services direct

› › RAC claims handlers will always proactively pursue the three step process illustrated opposite. › › This process has ensured that,in 2017, we recovered 97% of our customer’s losses and 95% of claims were settled or passed to solicitors within 6 months of losses received.

Legal and motoring advice helpline

Injury and rehabilitation

We’ll provide a specialist Personal Injury Solicitor to support drivers and their passengers with their claims and the provision of medical help such as physiotherapy, scans and consultant appointments. We put the customer at the heart of the process – focusing on compensation and also their rehabilitation to ensure they return to full health as quickly as possible.

We ensure our solicitors start a conversation with the other party rather than an adversarial exchange. With this approach they continue the collaborative process in order to establish, assess and meet the customer’s ongoing rehabilitative needs. We will not charge for this service or make a deduction from the customer’s compensation. Your customer keeps 100% of their compensation. This service is also supported by Lyons Davidson solicitors.

We also provide 24 / 7 telephone-based advice on any private law matter in the UK, such as:

RAC’s Legal Advice service is designed to help customers through difficult and often stressful legal situations. We have a team of professionals offering 24/7 telephone based advice and practical support on a range of private law matters. Our legal advisors provide advice on so much more than just motoring related issues, which will benefit Towergate customers needing these services.

P Motoring issues P Family Law

P Employment disputes P Wills and all associated documents i.e. Trusts P Disputes on personal injury

P Consumer contractual disputes P Property sale/purchase disputes P Residential / neighbourly disputes P Probate and Estate Administration

Motoring prosecution defence and contract disputes

With over 20 legally qualified professionals, we provide assistance to over 80% of callers without the need for them to engage the services of a solicitor to resolve disputes of this nature.

A full time trainer and quality assurance manager support the teams, ensuring they are up to date on legal matters.

When a solicitor is required, the costs will be covered under the Towergate Insurance policy. RAC will provide a specialist Solicitor to support drivers with their legal defence and customers with their contract disputes. 1. Motoring prosecution defence claims are supported by Slater Gordon Lawyers.

2. Contract dispute claims are supported by Lyons Davidson Solicitors.

RAC First Notification of Loss (FNOL)

RAC currently provides FNOL services to insurance companies and brokers, such as NFU Mutual, esure and Zurich. Our trusted brand will give Towergate Insurance the confidence that your customers will be looked after 24/7/365 by RAC. Our team of named individuals will be familiar with your particular processes, and will provide day-to-day continuity. Our FNOL processes have embedded dedicated call numbers, dynamic and priority routing, email reporting and instant crash detection notification. Once one of your customers has reported an incident, an FNOL report will be sent in real-time to various recipients, including our in-house ULR team, in line with Towergate’s requirements for fast and responsive action to be taken. We also support some insurers and customers with other actions such as instructing contact for Towergate and your customers to ensure service

Our state of the art system is configurable by RAC and has allowed us to meet the needs of our customers and use different ‘scripts’ across a range of sectors. RAC’s successful FNOL levels are the result of the following factors: › › 365 / 24 / 7 availability to ensure continuity and no handover to other out of hours providers. › › A comprehensive FNOL process. RAC’s FNOL process takes 11 minutes on average and, unlike other providers, captures the key information on the first call. › › Successful marketing with the use of bump cards for some customers and Towergate’s HGV LEI drivers leaflets (pictured opposite). › › Successful fraud detection with early fraud indicators identified by our system. › › Reducing FNOL time by using mapping technology, and viewing the incident location in ‘street view’. This captures factors such as lane discipline and right of way and can assist with claim disputes.

MOTOR LEGAL SERVICES & ADVICE

HAD AN ACCIDENT? Get legal advice and support from RAC Legal Services

Your Towergate Motor Legal Expenses policy gives you/your driver and the passengers in your vehicle support and advice provided by RAC Legal Services. Help and assistance after an accident which wasn’t your fault Personal injuryassistance RACcanhelp if you/yourdriveror yourpassengerssufferan injury.We’llprovideaspecialist personal injurysolicitor tosupportwith theclaim,and theprovisionofmedicalhelp,suchas physiotherapy,scansandconsultantappointments. RACdonotcharge for thisservice,ormakeadeduction from thecompensation.Thecostof the solicitor iscoveredby yourTowergatepolicy. Help torecoveryouroutofpocketexpenses RACalsoofferssupport for youand yourpassengers inhelping to recover losses in theeventof: • Policyexcess, thehireofanalternative vehicleor the lossofuseof your vehicle • Lossordamage to toolsof tradeorpersonalpossessions • Lossofearnings if you’reunable towork togetherwithotheroutofpocketexpenses,suchas additional travelcosts Motor legal advice Youand yourpassengersalsohaveaccess toRAC’s24/7MotoringLegalAdvice line.Weprovide adviceonawide rangeofmotoring issues frombuyingandsellinga vehicle through toadviceon motoringoffences. Up to £10,000 to help you defend a motoring prosecution Wecanprovide youwithadvice if you’re taken tocourt foracriminalmotoringoffence,suchas carelessdriving,andprovide youwithaspecialistsolicitorwherewe feel thereare reasonable prospectsofsuccessfullydefending theprosecution. Up to £10,000 to help you claim for damages regarding contract disputes for • Thepurchase,sale,orhireofamotor vehicle • Theservice, repairor testingofamotor vehicleor • Thecarriageofgoodsorpassengersbyamotor vehicle Ifyouwereat fault,wecanstillofferall theseservices toyourpassengers

Talk to us today Call 0330 159 0450

insurers’ approved repairers, instigating their third party

intervention services or, if preferred, offering RAC’s own repair and third party intervention services.

Talk to us today Call: 0330 159 0450

Full termsandconditionscanbe found in theTowergateMotorLegalExpensesPolicy (MLE1).03numbersarechargedatnationalcall ratesand included in inclusiveminuteplans from landlinesandmobiles.Callsmaybemonitoredand/or recorded. RAC InsuranceLtd (RegisteredOffice:RACHouse,BrockhurstCrescent,WalsallWS54AW.RegisteredNo.2355834)acting throughRACLegalServicesof GreatParkRoad,BradleyStoke,BristolBS324QN.RACLegalServices isadivisionofRACMotoringServices (RegisteredOffice:RACHouse,Brockhurst Crescent,WalsallWS54AW.RegisteredNo.01424399).RACMotoringServices isauthorisedand regulatedby theFinancialConductAuthority in respectof insurancemediationactivities.RAC InsuranceLtd isauthorisedby thePrudentialRegulationAuthorityand regulatedby theFinancialConductAuthorityand thePrudentialRegulationAuthority. Towergate isa tradingnameofTowergateUnderwritingGroupLimited.RegisteredAddress:TowergateHouse,EclipsePark,SittingbourneRoad,Maidstone, KentME143EN.Registered inEnglandNo.4043759.Authorisedand regulatedby theFinancialConductAuthority. I.FLTWSINS.XTR.PC.1016074142-1

Phase 2 Motor Claims Management We understand Towergate is currently reviewing your Motor Claims service provision. We recognise that given your structure and relationships ‘one model will not fit all’. In collaboration with your claims project team and your strategic partnership insurers, RAC want to work with you to develop a Motor Claims proposition that meets the needs of both Towergate and your customers.

For your fleet customers, the benefits of using RAC for all or part of your Motor Claims service include:

RAC Accident Management

RAC has a long-standing experience of providing motor claims services in partnership with insurance companies and brokers. Our Accident Management business is unique in having wider relationships with insurers from a motor claims management, road traffic accident recovery and roadside partnership perspective, rather than solely for motor claims situations. We currently provide a range of different accident management services for companies such as NFUM, Aviva and Zurich Insurance dependent on their requirements. We are offering to work closely with Towergate’s claims review project team and, where appropriate, your partner insurers, to share our expertise in providing motor claims services in order to refine the best solution for Towergate and all of your customers. “In 2017 RAC Motor Claims Management saw a 33% growth in core services and solutions delivered directly to established and new entrant insurers”

Towergate will benefit from our specialist knowledge, resulting in a flexible solution for a smooth customer experience. Our Services RAC can manage all or part of the end-to-end motor claims service for Towergate by providing the following services from our in-house team: First Notification of Loss services 24 / 7 / 365 service in-house Triage Using intelligent decision making to assess liability and damage Deployment and mobility Deploying the right resource first time to keep your customers moving Engineering Process and time driven expertise from ATA and VOA accredited engineers Repair progression Reducing cost and vehicle off road time Third Party Intervention and Uninsured Loss Recovery Services Expert cost mitigation and quick recovery services

Reduced primary and secondary costs

Reduced risk exposure

Improved operational performance

Improved vehicle utilisation and driver satisfaction

Better data capture

Private and other commercial customers will also benefit from an excellent, seamless customer journey, including prompt commencement of repairs and improved vehicle off road times.

Claims and Repair Management , We can offer various claims management options including: FNOL only FNOL and notify your customers’ insurers

1 2 3

Full claims management including FNOL, claims progress monitoring, AD repair, insurer repairer deployment, replacement vehicles and TP intervention

Repair deployment Our system enables us to deploy to both our own and our customers/ insurers preferred network. Our processes are designed to reduce cost through streamlined repair deployment and progression. › › Access to our fully audited PAS 125 repair network › › Access to fully audited specialist and affiliate partners › › Daily VOR management › › Parts management programme › › Specialised repair cost control (most economic repair route) › › Cost reduction through appropriate repair technique › › Pre-agreed labour rates › › Agreed and measured SLAs › › Comprehensive 3 year warranty › › Traditional, rapid and mobile repair technologies › › Specialist non network cost and quality control

Managing repair costs with optimum processes In order to manage repair costs, we consider the optimum processes to include in-house engineers and

trusted assessors. Mobility solutions

We understand that keeping your customer on the road is a high priority, so when incidents occur we will provide a suitable replacement vehicle for the duration of the repair. The following options are available to your customers: Courtesy car we will provide a courtesy vehicle for the duration of the repair. Short-term hire vehicle when a standard courtesy vehicle is unsuitable we can make arrangements to place your policy holder in a larger vehicle in line with agreed procedures. We are able to source the hire vehicle through an RAC approved provider.

Adam Smith

Towergate Account Manager

I personally very much value the relationship we have with Towergate and it is one that continues to grow from strength to strength. These latest discussions around our LEI and Motor Claims services are testimony to this and I believe that between us we have a great opportunity to build a market leading motor claims proposition. We are focused on delivering exceptional service to your customers; it is what underpins the trust that consumers have in the RAC brand. I am confident that in the continued spirit of our open and collaborative relationship, combined with our expertise in these areas, we can deliver a truly first class LEI and Motor Claims proposition for you and your customers.

I am delighted that RAC have been given the opportunity to discuss our LEI and Motor Claims services with Towergate to help shape your motor claims proposition. Over the past few years we have continued to develop a strong and profitable relationship for both companies, building on long standing product offerings through to the more recent breakdown and telematics propositions for your customers.