News

A year in the life

 

Motor insurance has rarely been out of the headlines during 2011. Premiums have been under the spotlight while claims costs have also gone under the microscope. Read on for our ‘year in the life’ of the motor insurance industry.

Parliamentary committees, market reviews, OFT enquiries; you name it, the motor insurance sector has experienced each and all of these during a turbulent 2010/11.

Here’s our roundup of the biggest stories from the last twelve months.

 

October 2010 – Lord Young’s health and safety review is published, encouraging take up of the fixed cost claims regime for road traffic accidents.

 

February 2011 – BAIS unveils additions to the Xtra Assistance Product set in anticipation of increased demand for before the event motor claims solutions.

 

March 2011 – BAIS creates the Non-Fault Matrix; removing frictional costs from the claims process, the Matrix gives control back to insurers and brokers "The sheer administrative burden and time delays of tracking down at-fault drivers are what has caused much of the problem," says Broker Assistance Insurance Services managing director, Jon Ralph

 

March 2011 – The House of Commons Select Committee publishes its 4th report into the cost of motor insurance.

 

April 2011 – The British Insurance Premium Index announces a 40% increase in the average cost of comprehensive cover from 2010-2011.

 

April 2011 – National broker Aston Scott Ltd and Broker Assistance Insurance Services agree an extended partnership programme to provide a high quality claims handling service, for Aston Scott’s motor client portfolio.

 

June 2011 – The Continuous Insurance Enforcement scheme is launched with the insurance industry led by the Motor Insurers’ Bureau, beginning the ‘stay insured’ campaign.

 

June 2011 – The Information Commission says it will investigate whether motor insurers who sell clients' details to personal injury lawyers are breaching data protection law.

 

June 2011 - Broker Assistance Insurance Services is appointed as Alan & Thomas Insurance Group’s claims management provider for the company’s entire motor portfolio.

 

July 2011 – Prime Minister David Cameron backs a referral fee ban.

 

Sept 9th 2011 – Justice Minister Jonathan Djanogly announces that referral fees will be banned at the same time as the HoC Select Committee publishes its 5th Special Report into the cost of motor insurance.

 

Sept 13th 2011 – Jack Straw MP announces his ideas for a Motor Insurance Reform Bill in the House of Commons, including five specific proposals such as the removal of insurers’ ability to use geographical personal injury claims data as an underwriting criteria.

 

October 6th 2011 – The Legal Services Act becomes law in the UK, ushering in a new liberalised marketplace in which for the first time, non-lawyers can own legal services companies.

 

November 8th 2011 – A cross party group of MPs calls on government to establish a cross-ministry committee to tackle ‘rising motor insurance premiums’.

 

December 7thth 2011 – Willis Re publishes the Fourth Annual UK Motor Market Review, surveying over 50% of the UK market. It finds premiums continuing to rise, with some drivers facing increases of up to 50%.

 

December 12th 2011 - BAIS appoints a new broker relationship team to help deliver the company’s growth plans and support existing customers.

 

December 14th 2011 – Office of Fair Trading announces call for evidence into the UK private motor insurance market.