7 Apr 2014
Quindell has signed the world's largest telematics contract to date. It takes the form of a joint investment with the RAC in a new company, Connected Car Solutions Limited (CCS) to distribute Quindell and the RAC's combined connected car capabilities. Initial investment for CCS of £30 million. CCS was now owned 51% by Quindell and 49% by the RAC. A further £70m was to be invested longer term subject to key milestones. The RAC brand was licensed to CCS in relation to connected car solutions. Quindell was not raising capital to meet its 51% share of investment or planned organic growth. RAC and Quindell have agreed CCS would take 100% of the benefit from addressing the cost of claims from RAC connected car consumers whilst focusing on driving down the cost of claims and improving the customer journey following an accident or breakdown related event. Potential addressable claims costs in relation to the RAC beyond its existing revenue with Quindell is over £4bn of UK auto claims costs in first 10 years post roll out, Existing Quindell outsourcing remains in place for non-connected car RAC breakdown consumers. Longer term additional big data value to be generated beyond connected car utilising Himex Digital World for initiatives including connected home and connected health subject to final agreements.
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