RSA is exiting its mini fleet business in addition to personal lines motor as it cuts down its e-trade offering, Insurance Business can reveal.
The insurer will shut down its mini fleet product from 1 June 2023, and will not be offering new business or renewals.
In a letter sent to brokers, seen by Insurance Business, RSA said it would no longer be offering an online channel for fleet business and cited its “ongoing product simplification journey”.
“RSA is working on a programme of simplifying our business and removing complexity by reducing the number of products we offer,” RSA said in a notice on its website. “We aim to deliver a more efficient business model that makes us easier to trade with. As part of that project, we have refocused the products we sell through the e-trade channel.”
FleetShield, the insurer’s commercial motor insurance cover for larger fleets, will continue to take on new and renewal business.
The mini fleet exit has been in the works since early 2022, Insurance Business understands, as RSA looks to simplify its business under new ownership. While the mini fleet product is being shut down, it is understood that fleets of five vehicles or more may still be considered by the insurer, though not under e-trade.
An RSA spokesperson said: “Like most businesses, we regularly review our appetite to ensure we’re offering the best products and services to our brokers and customers.
“This ensures we constantly improve our portfolio and makes us easier to do business with. As has previously been communicated to our brokers, we have taken the decision to no longer offer Mini Fleet policies through our e-trade channel.
“However, this does not in any way impact our standard Motor Fleet business, which we will continue to underwrite directly through our regions business.”
Last week, RSA confirmed it would exit personal lines motor insurance, which it said at the time accounted for around £120 million in annual premium.
The insurer expects to incur restructuring costs of approximately £35 million in Q1 2023 and anticipates releasing approximately £60 million of capital held against motor-related insurance risk as the portfolio runs off, it said last week.
RSA’s UK business has been owned by Canadian insurance giant Intact Financial Corporation (Intact) since June 2021, following a joint £7.2 billion deal with Scandinavian insurer Tryg that saw the group’s wider operations split up between the two.
The insurer’s leadership team has targeted a 24-month period from the deal’s 1 June 2021 close to outline potential further changes.
