Earlier this year the two organisations announced a joint investment in a new company, Connected Car Solutions, that would distribute Quindell and RAC's combined connected car capabilities. The JV was intended to target over 2 million RAC customers with the black box units that would offer lower insurance premiums for careful drivers.

However Quindell has announced today (2nd September) that it is to acquire 100% of CCS, adding in a statement: ‘Due to market conditions beyond the control of either Quindell or RAC, the parties have concluded that it is not the best use of capital for either party to finance a free telematics roll out to consumers as initially planned. It is now in the best interests of both parties to restructure CCS and for Quindell to acquire RAC's interest in CCS and continue their strong working relationship both in respect of existing contracts and in the future.’

Quindell added that the two firms ‘continue to have strong and significant ongoing relationship with future opportunities for further collaboration’ and said it continues to be a core technology supplier to the RAC.

Chris Woodhouse, chief executive officer of RAC, added: ‘We continue to have a strong relationship with Quindell as a key partner and intend to continue to work closely in the connected car space as well as through our on-going claims outsourcing and technology arrangements, which have been of significant benefit to both parties to date.

‘RAC has been looking after its members and their needs for more than 115 years and our on-going association with Quindell will enable us to continue improving their customer journey, whilst delivering market leading propositions into the future.  Quindell's technology and integrated outsourcing helps deliver to our members and commercial partners a best of breed solution that will enhance their driving experience.’