Psychometric testing and IPT relief in ABI study

Psychometric testing is one of a raft of initiatives that insurers will assess to try to make insurance more accessible for young drivers.

The ABI, in line with the Greenaway report, will look at initiatives such as Pass Plus - a second driving test - and Norwich Union's 'pay-as-you-drive' scheme, designed to lower the cost of insurance while still pricing for risk.

The report is expected to consider some suggestions by industry experts, such as using psychometric tests to assess level of risk, extending Pass Plus or removing insurance premium tax for young drivers.

A spokesman for the ABI said: "One of the key planks of the Greenaway report was that more needs to be done to look at ways of putting young drivers on the insurance ladder."

Biba is understood to favour encouraging insurers to take into account young drivers' record in driving their parents' cars when assessing premium levels.

A Biba spokesman said: "If it is risk-based pricing you are after then using a driver's experience in other cars puts you way ahead of the game."

The report, to be published in the third quarter, is expected to focus on initiatives within the private sector rather than government support for young drivers.

The ABI spokesman said: "Subsidies probably won't work. The main thrust of our work is looking at ways in which the private sector can price drivers into the market."