Direct Line Insurance Group plc: Analysis and Strategic Recommendations

Individual Management
Report

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................3
MAIN BODY..................................................................................................................................3
Strategic Audit.............................................................................................................................3
Analysis.......................................................................................................................................5
CRITICAL REFLECTION.............................................................................................................8
REFERENCES................................................................................................................................1

EXECUTIVE SUMMARY
The following report contains the analysis of data and information of Direct Line
Insurance Group plc, a British insurance company regarding its declining performance in the past
3 years and the reasons are therefore ascertained for such a performance and the most
appropriate strategic recommendations has to be made for the business to be successful in the
next 3 – 5 years. Recommendations for the improvement in the functions of the entity to improve
over next 3 – 5 years can be reduction and rearrangement of expenses by the group by
restructuring the commission expense structure and other expenses by looking for cheaper
options. Customer retention shall be focussed on as gaining new customers in the insurance
business is way costlier than retaining the customers it already has.
Also the insurance companies need to comply with various regulatory mandates at
various levels of its operations therefore, the group shall adhere to the regulatory mandates
applicable on it to remain fully functional in the industry. The underwriting process includes
various complex calculations and deriving large volume data therefore, accelerating the process
of underwriting by automating the process will lead to decrease in various costs of such risk
assessment and will also result in fewer larger pay outs. Once a customer joins the insurance, he
will be the part of the organisation for a very long time and will provide the higher value to the
organisation lifetime therefore, acquiring new sales is vital for the organisation for its growth and
operations in the industry. Target audience shall not only be identified but shall also be
communicated to effectively for the acquisition of relevant personal data by promising them
benefits from the services of the company and this personal data can be utilized for more
development activities like more competitive prices for the customers, faster services and more
customer focussed content.
MAIN BODY
Strategic Audit
Following is comparison of financial aspects of Direct Line Group of the financial year
ending 31st December, 2021, 31st December, 2020 and 31st December, 2019.
PARTICULARS 31ST DECEMBER,
2021 (£m)
31ST DECEMBER,
2020 (£m)
31ST DECEMBER,
2019 (£m)
Total Income 3247.7 3214.8 3299.7
Total Expenses (1048.7) (1018.5) (916.4)