Direct Line's Competitive Position Steadying After Change in Regulations and Operational Headwinds

Direct Line was founded by Peter Wood and Martin Long in 1985 as a personal lines insurer that operated with a model of direct sales. The business became synonymous with selling directly and for its well-known red telephone. While the business was originally established to cut out the middleman, the company has since reverted to a model of selling through well-known external brands. Initially established by Royal Bank of Scotland, as the financial crisis began to unravel, RBS was requested to divest Direct Line. While RBS fully exited its financial interest in 2014, there wasn’t a complete operational separation until 2017.