Direct Line claims price comparison launch is a ‘key pillar’ in corporate strategy

Direct Line Group has introduced three new Direct Line branded motor insurance products on price comparison website (PCW) Compare the Market.

Covering a range of cover options from ‘essential’ to ‘premium,’ the products are specifically designed for customers purchasing through price comparison sites and offer what Direct Line describes as “distinct cover features”, including digital only servicing. 

The firm claims these PCW-specific products complement the existing suite of insurance it sells direct, offering customers “greater choice”. Plans are in place to expand these products across other price comparison websites through the course of 2025. Sister brands Churchill and Green Flag are already available via price comparison websites.

“It is exciting to be launching our iconic Direct Line brand on price comparison websites, enabling customers to buy Direct Line motor insurance through their preferred channel,” said Adam Winslow, CEO of Direct Line Group on the official launch (20 December).

Winslow described the shift to price comparison sites as a “key pillar” of the company’s corporate strategy, demonstrating Direct Line can “move at pace” to meet changing consumer needs.

The news comes as today (23 December) rival Aviva announced it will buy Direct Line for £3.7bn, a move the insurer predicts will deliver “cost synergies” of £125m.

Direct Line cuts marketing spend amid price comparison launch

The decision to appear on price comparison sites was first announced at the firm’s Capital Markets Day in July 2024, reversing a previous stance urging consumers to “come direct to compare” prices featured in Direct Line’s TV campaigns as recently as 2023.

The pivot towards price comparison sites came a few months after the appointment of former Confused.com marketing boss Samuel Day as CMO in January 2024.

Speaking in July, Winslow explained the brand is reversing its previous stance in order to “meet customers where they shop”, stating that around nine in 10 customers prefer to shop through price comparison websites.

“We gave too much weight in the past to our strengths within the direct channel, without creating a clear route to win in the PCW channel,” he told investors in July.

The Direct Line Group CEO stated the decision was being taken to help the business return to growth and deliver “consistent, sustained profitability”.

Speaking at the time, managing director of motor business at Direct Line Group, Lucy Johnson, also claimed underperformance in customer acquisition had led to the group’s share of the motor insurance market declining.

She explained marketing spend would be reduced while a “test and learn approach” was applied to factors such as pricing. Johnson also claimed a preoccupation with direct sales had caused the business to focus less on digital acquisition and therefore lose ground to competitors

“Competitor expense ratios and digital benchmarks suggest that none of our leading competitors have nearly as many phone calls or printed communications as we do,” she asserted. “This is one of the consequences of an over-concentration on a direct distribution channel where there was less need to make this digital transition.”