Insurance outsourcer Quindell's share price has soared 8.4 per cent today, on the back of the news that it has secured a five-year contract with an unnamed “major insurer”.
The deal will see Quindell provide telematics technology, devices and associated services to the Canadian top-three business, which has more than three million customers, 1,700 brokers and a “significant” market share of the car insurance market.
Quindell said its new partner was planning to become “a strong market leader in the development and delivery of telematics-based insurance solutions”, aiming to secure 120,000 telematics customers during the five year contract period.
Quindell chairman Robert Terry said:"We are extremely pleased to be able to expand our relationship to work with [the unnamed insurer] in this new area. We believe this represents a tremendous win for both parties...
“Even if we only achieve the bare minimum levels of telematics market penetration, this contract will extend our strong telematics leadership in Canada. It also provides us an opportunity to develop and deliver state-of-the-art technology to the Canadian insurance market that has been proven to lower the cost of claims by promoting safe driving practices for both young drivers and mass-market propositions."
Quindell's share price has been volatile this year after a number of critical claims were made by analyst firm Gotham City Research in April, which were later found to be libellous.