My Licence testing to begin next year
The ABI and Motor Insurers’ Bureau (MIB) have launched a consumer-facing brand for a new initiative that will ask drivers for their driving licence number when applying for a quote.
My Licence is the new brand for Insurance Industry Access to Driver Data (IIADD), a project with the DVLA and Department for Transport which will give insurers and brokers accurate information about a driver’s convictions and penalty points when they apply for insurance.
Data matching with the DVLA shows that up to 23% of motorists fail to accurately disclose their driving record, including disqualifications.
The ABI says the data hub will reduce fraud and lower premiums for honest customers by up to £15. Checking driving records at the point of application, instead of asking at the point of claim, will speed up settlements as well as giving participating insurers an extra data source to calculate their premium.
The industry hub will be managed by the MIB and is due to go live in the second quarter of 2014, with testing starting in February.
IIADD programme board chair and Sabre Insurance chief executive Keith Morris said: “The financial benefits from more efficient administration and fewer fraudulent applications will be huge to insurers and brokers, and those firms that are early adopters will gain a real advantage over their competitors in what is an extremely competitive market.
“The key challenge for all insurers right now is to make sure they are able to be one of those early adopters.”