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Press Release

Ready For On-Line Motor Insurance Certificates

Immediate release: 14 December 2006

The BGL Group will be ready to offer motor insurance customers online certificates early in the New Year and believe that this is a natural evolution with no more risks than traditional paper copies.

Budget and a number of other major insurers attended a meeting with the Department for Transport (DfT) and the Association of British Insurers (ABI) in May this year to discuss amendments to the Road Traffic Act with a view to legalising online insurance certificates. Expectation was for the changes to come into effect in January 2007, however, this has been delayed.

Matthew Donaldson, Group Director at Budget comments: "It is our intention to offer online certificates and we are disappointed by the delay, as we have everything lined up to do so in the New Year. A number of insurers have signed up to proceed in principle, in anticipation of the legal requirements coming into effect soon thereafter."

The BGL Group’s consistently innovative approach to personal lines insurance will see it launching two new internet initiatives by Summer 07. This is on the back of extraordinary growth – GWP up 25% to £376 million and file size up by 34%. Their target of two million policies under management (motor, home and commercial vehicle) looks likely to now be achieved by June 07 well in advance. Internet business has exploded, however the Budget and Dial division has also seen phenomenal progress in off-line sales, with almost 100% growth in the last ten months.

Matthew Donaldson continued: "The operational model for any intermediary today must involve a fully integrated on- and off-line customer proposition, whilst continuing to innovate in order to deliver what customers want."