The data, direct and digital specialist will manage all communication to previous enquirers and lapsed policyholders within the motorcycle, car and home insurance categories and improve campaign planning and evaluation.
Prospects will be segmented according to their propensity to respond to a range of offers and incentives, and the most appropriate contact strategies applied to each customer group.
JaywingDMG will be in charge of campaign execution, including the sourcing of creative concepts.
Rebecca Donohue, head of marketing at Carole Nash, said: "JaywingDMG has demonstrated that our application data can be used for better targeting within our customer acquisition programme, to powerful effect.
"The team has shown its commitment to achieving the best possible return for us by sharing some of the investment risk from these types of activities."
Steve Denby, managing director at Jaywing, said the contract was an opportunity to prove an intelligent analytical approach can "reap huge rewards".