Hastings straw man

RAC and Hastings a refreshingly straightforward offer

Refreshingly straightforward RAC are impressed with the Hastings approach and have borrowed your words for our proposal underlining our simple commitment to deliver a breakdown service that will delight both you and your customers. We know that with an instantly recognisable brand, a fleet of dedicated patrols, 1,000 dedicated customer service staff and a range of innovative products and services, we can support your vision to offer you a competitive advantage in this fast moving sector.

RAC is at the cutting edge of breakdown assistance, leading the way with technical knowledge and innovation to provide a service that improves repair rates and increases customer satisfaction. In addition, working in partnership with Hastings we can offer a range of market leading products which will respond to the needs of your customers and the ever changing needs of the regulatory market.

We are more than just a breakdown provider and look forward to discussing a long term approach that will support your strategy to offer refreshingly straightforward insurance products at competitive prices with a customer focused approach. As part of our offer we will also share our vision to be the “Motorists Champion” and place a blanket of care around your customers, giving them peace of mind, ensuring sustained loyalty to both our brands.

Improved conversion rates In a direct comparison where the same insurance provider sells RAC branded and non-branded breakdown, they have consistently achieved conversion rates of 17% and 10% respectively

A powerful brand supporting customer retention We believe that by selecting RAC as your breakdown partner your customers will benefit from the technical knowledge of our experienced patrols, the investment in our fleet and equipment and the centralised support of our call centres.

Consumer research points to the RAC brand being widely recognised across UK motoring circles. With 1560 patrol vans and flatbeds on the UK’s roads every day and offices prominent on key UK motorways, most motorists know exactly who the RAC is and the services offered.

Should RAC be successful in collaborating with Hastings we would clearly want to maximise every sales opportunity. We believe this can be achieved through use of the RAC brand in marketing materials and sales documentation. RAC will provide guidelines, as well as full marketing support, enabling Hastings to focus on the road risk element of the sale.

Nationwide patrol force We are headquartered in Birmingham with approximately 3,600 dedicated staff operating from three bases throughout the UK. Our breakdown assistance centres operate 24 hours a day, seven days a week, 365 days a year and handle around 4 million calls a year, fixing a car every 19 seconds.

RAC’s branded fleet of patrol and recovery vehicles cover the entire United Kingdom and are distributed to ensure the optimum model for dispatch. Our first aim is always to get the vehicle attended and repaired by one of our own resources. We train and equip our uniformed Patrols to be the best in our industry. Each liveried Patrol vehicle carries over 500 parts. Patrol Technicians have on average 13 years’ experience with RAC. Their focus is simple: Fix as many vehicles at the roadside as possible, providing outstanding customer service on the way.

RAC Fuel Vans Every year a large number of drivers put the wrong fuel in their car. RAC provide our own wrong fuel recovery service to members and a misfuel product for our corporate partners. It offers customers: • Fuel Patrols that are trained mechanics with a full understanding of the vehicle systems who hold a current Safety Alliance accreditation to allow them to work safely on Petrol station forecourts

Right resource, first time We know that your customers want to get back on the road as quickly as possible following a breakdown incident. That’s why our approach to service is based around attending to the customer’s needs and repairing their vehicle as quickly as possible. We do this by making sure we send the right type of van every time we attend so that we have the correct tools to keep your customers moving.

• Environment Agency approval

• Specialist vehicles purpose built by RAC, uniquely fitted with custom-manufactured mobile draining equipment

• The ability to tow a vehicle if required

• Attendance for cars, vans under 3.5 tonnes, motorcycles, boats and plant machinery

1,461 patrol vans for repair and tow

55 recovery trucks for towing larger vehicles

27 fuel vans with fuel and flushing equipment

19 tyre vans carrying spares

1 electric charging van for electric vehicles

140 contractors with specialist equipment

Putting customers at the heart of everything we do As RAC attends more than 80% of breakdowns using our own resources, we have full control, visibility and ownership of the customer journey. From the initial call coming in, through to the selection and dispatch of the right resource to remedy each fault – RAC’s aim is to make every customer interaction effective, efficient and seamless.

CSI and NPS scores in the 90’s demonstrate the level of appreciation we receive from our customers and this leads to customer retention figures of 80%. Our customer journey is illustrated overleaf and we have a detailed roadmap to continually improve the customer journey involving deeper integration of our mobile, data and new technology.

To access RAC’s breakdown services, your customers can call our contact centre 24/7/365. Alternatively, RAC’s mobile app can be used to quickly locate customers, using GPS technology. To enhance the customer experience - we let customers know how long they can expect to wait to be attended, and we keep them updated by phone as standard – not just for exceptions. All customers are greeted with understanding and empathy by our trained call centre operatives and patrols. RAC use handheld PDA’s to give customers the opportunity to rate our service immediately after attendance at the roadside. This allows us to monitor performance and ensure customer satisfaction.

CUSTOMER DRIVES AWAY HAPPY

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PATROL DISPATCHED

• Circa 1,500 trained patrol technicians • 80% Patrol Attendance Rate (PAR) • Average 13 years experience

PATROL ARRIVES AND COMPLETES ROADSIDE FIX

Effortless customer journey, keeping customers informed and with the ability to track call-outs via a mobile app

EFFORTLESS CUSTOMER JOURNEY

• Arrive within 50 minutes on average • 80+% fixed, on average in 38 minutes • Patrol carries 500+ parts • Technical innovation for more roadside fixes

OR SPECIALIST RESOURCE DISPATCHED (FUEL PATROL, TYRE PATROL, ELECTRIC CHARGING VEHICLE)...

TOP ROADSIDE FAULTS RESOLVED

• Specialist solution for right customer outcome

YTD CSI 94.7

YTD NPS 93.6

TYRES UsingUniversalMulti-fitWheel /TyrePatrols

MIS-FUELS UsingFuelPatrols

POLICY TERMS & CONDITIONS

OR RECOVERY FLATBED DISPATCHED

NON STARTS - ENGINE UsingRACScan+

BATTERY UsingRAC’sBatteryTester

• Fair, clear and relevant policy wording • Written in plain English

• Vehicle recovery – combination of own resource and contractor

COMPLAINT TO SERVICE BREAKDOWN RATIO: 0.82%

RAC DYNAMIC QUESTIONS TO DELIVER THE RIGHT CUSTOMER OUTCOME

• Priority on vulnerable customers • Customer service with empathy (fix the customer, not the car)

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7

8

5

6

3

1

4

OR RECOVERY COMPLETED AND ONWARD TRAVEL FULFILLED

2

POST EVENT CUSTOMER FEEDBACK AND COMMUNICATION (INBOUND AND OUTBOUND)

• Proactive offering of hire car/hotel/rail

• Electronic Customer Satisfaction captured • Net Promoter Score Captured • eCARS work/battery report sent to customer • Transparent and clear report on actions and next steps • Customer feedback used to improve services

RESOURCE SENT BASED ON VEHICLE FAULT / AVAILABILITY • No need for additional resource 90% of time

CUSTOMER UPDATED ON ARRIVAL TIME

CUSTOMER BREAKDOWN

• Patrol or office calls / mobile tracking to keep customer updated

NOTIFICATION TO RAC BY PHONE OR APP

• Fast and accurate response • Estimated time of attendance provided • iCAD (dispatch system) single view of all resources

Technical innovation that enhances customer focus

Established in 1897 and with 8.6 million members the RAC has consistently been at the forefront of developing motoring services - from introducing uniformed patrols in 1901 and roadside emergency telephone boxes in 1912 right through to the present day when we continually invests in technical and service innovations designed to bring benefits to our partners and their customers. To stay ahead, RAC’s Technical Centre of Excellence has worked in partnership with customers and manufacturers, as well as investing £66million in the last 5 years in new research and innovations ensuring that we continue to meet and exceed our customers’ needs.

Technical innovations that RAC has pioneered and that provide tangible benefits for our clients and their policyholders include: - Multi-fit wheel - a spare wheel that fits over 90% of cars

- RAC tyre patrols

- RAC’s diagnostic tool (RACscan+)

- RAC DSS - 700S battery tester - the latest battery testing equipment - Rapid deployment trailer (RDT) - enabling every van to tow a customer’s vehicle

New products

Roadside, Recovery, At Home, Onward Travel and European cover are all tried and tested products within the Breakdown and Insurance market. They provide cover based around labour costs at the roadside but primarily exclude the cost of parts, or parts and labour at a garage, should a roadside repair be unachievable. In a world where vehicles are becoming more reliable other factors are causing the need for roadside assistance to increase. Many manufacturers no longer put a spare tyre in the vehicle to save weight and reduce emissions. This has led to a significant increase in call outs for ‘Puncture No Spare’ (PNS) incidents. In 2012 RAC received 39k calls for PNS assistance, in 2016 this figure iwas 165k. More diesel vehicles have led to increased mis- fuelling incidents and more weather extremes see battery failures increasing.

Having identified these trends and the potential lack of cover afforded by the standard breakdown elements RAC has created four products that can be sold alongside the core roadside products: Garage, Parts & Labour Warranty Battery Rescue Wrong Fuel Recovery Tyre Rescue All products have delivered strong sales within the RAC membership base and these are now available to our partners to deliver an enhanced customer proposition and commission opportunities.

An agile and transparent partnership

RAC will partner with Hastings to deliver points of differentiation, enhance your current service offering, increase conversion within your existing customer base and provide industry insight and expertise to enable you to continue to deliver integrated products and services.

In addition, RAC have invested in the latest technology to allow our raw data to be transformed into many useful variants and it enables full visibility of incident volumes, types, fault trends and details of repeat breakdowns, enabling us to produced tailored reports and for you to be able to analyse data for targeting marketing, renewal and cross sales activity. This is all available on our online MI portal that can be accessed by Hastings at any time.

We propose a partnership approach that reviews strategic and day to day activities on a regular basis. We will provide a structured, robust account management strategy to ensure operational excellence at all times and one that responds quickly to changing market conditions to maximise commercial benefits. This approach, together with dedicated marketing and training support gives us the capacity to drive a continuous improvement agenda and introduce innovative and noticeable change to your business throughout the term of the contract.

A combination of technology, mobile and data is turning many industries on their head. Everything is mobile –the world is now seen through a smartphone – it’s the most important device in our lives. Motoring is changing too. The RAC is looking to the future with our ‘RAC Connected’ concept enabling us to integrate our telematics and diagnostic capability to create a breakdown and accident management service for the future. RAC Connected: the future, today

RAC Connected Breakdown provision today is largely reactive – a driver breaks down, needs assistance, and contacts a breakdown provider. Through our pioneering ‘RAC Connected’ project, RAC is now making the shift towards proactive and eventually predictive breakdown services. By directly connecting and integrating our telematics device and diagnostic capability with our breakdown, accident management and call centre systems, RAC Connected will enable us to know where customer vehicles are, when they are likely to breakdown and when they are involved in an accident.

This allows us to proactively make contact to advise what the customer should do next, resulting in a further improved customer and driver experience. We are investing heavily in the future and look forward to exploring ways for this to benefit both our businesses going forward.

Our commitment to Hastings

I am delighted that RAC have been given the opportunity to pitch for Hastings roadside assistance service, building on the engagement to date. Quite rightly, as your business has grown significantly, you now need to drive further cost and efficiency savings through your breakdown provider, whilst enhancing this provision in line with Hasting’s presence in the market.

My team and I see this as a great opportunity to demonstrate how we can deliver a premium service for Hastings that will serve to increase customer satisfaction and generate additional revenue streams within your business. Our commitment to providing improved repair rates through innovative technology will deliver real value as well as increasing customer satisfaction and loyalty. Our Management Information will offer insight and reporting that is accessible at any time through our online portal. Finally, in further support of our joint aspirations we believe there are reciprocal opportunities for developing add-on products that

should sustain profitable growth for both our organisations. We are excited about becoming your breakdown cover provider and look forward to discussing our proposal with you in more detail.

Dave Hobday CEO, RAC