Claims management specialist Auxillis is set to rebrand as Northgate Insurance Services in July, marking the next phase of its integration within ZIGUP's newly formed Northgate Mobility division.
Auxillis works with major UK brokers, insurers and dealer groups, providing claims management services and legal services.
Northgate Mobility was established in January 2026 to provide a more joined-up proposition across the full vehicle mobility lifecycle. The rebrand aligns Auxillis within that structure, with the business retaining its specialist teams and nationwide coverage while gaining access to a broader fleet of around 60,000 vehicles, including light commercial vehicles, specialist vehicles and the latest EV and hybrid models.
"As part of ZIGUP plc, we have always worked closely with our group companies to enhance our service offering. Being part of Northgate Mobility and the rebrand to Northgate Insurance Services reflects this ongoing evolution, strengthening collaboration and enabling us to continue delivering consistently high standards for our customers," said managing director Mel Bebbington (pictured). "While our core operations will remain unchanged, this enhances our ability to be more agile and forward-looking, strengthening how we support our customers, colleagues and partners."
The rebrand comes at one of the most challenging periods the UK motor insurance market has faced in years.
EY analysis forecasts the market to post a net combined ratio of 101% in 2025 before deteriorating to 111% in 2026, meaning insurers will pay out £1.11 in claims and expenses for every £1 collected in premiums, compared with 97 pence in 2024 when the sector delivered its first underwriting profit since 2021. EY attributes the worsening outlook to continued claims inflation, higher repair costs linked to increasingly complex vehicle technology, and falling premiums as insurers compete on price.
The repair cost picture is also deteriorating. Of the £2.9 billion insurers paid out in claims in Q1 2026, £1.9 billion went on vehicle repairs, up 3% on the previous quarter, with the average accidental damage claim rising to £3,699, an 8% quarterly increase driven by higher parts prices and growing vehicle complexity, according to the ABI.
Meanwhile, the government's Motor Insurance Taskforce, which published its final report in December 2025, identified replacement vehicles and credit hire as one of three principal operational cost drivers in the market.
The ABI and industry participants are developing a good practice code to reduce referrals to third parties and capture the management of more claims within insurers, a move with direct commercial implications for claims management companies operating at arm's length from insurers.
The taskforce highlighted replacement vehicle and credit hire costs, alongside longer repair lead times, higher parts costs and complexities around bodily injury claims as the operational drivers it wants the industry to address. The FCA has also confirmed it will work with the market to reduce third-party referrals without adversely affecting customer outcomes.
The integrated model offered by Northgate Insurance Services, sitting within a group that also encompasses fleet management, repair and specialist hire, aims to offer a more cost-effective alternative to fragmented third-party arrangements.
ZIGUP's reorganisation aligns vehicle provision and branch operations under Northgate Mobility, with the aim of enabling better customer engagement, operational streamlining and a more focused supply chain.
