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UK Car Insurance Industry Watch, May 2008 |
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This regularly updated section of the HomeApproved web site will cover the latest trends, research, opinion and developments in the UK car insurance sector. DFI
launch commercial fleet insurance platform The new service will mean that all brokers using DFI will no longer incur charges for processing insurance claims or through the repair of damaged vehicles. The service will also allow brokers to monitor the stage of each individual claim as it is processed. With 70 brokers already signed up, and an insurer panel including Brit, HSBC, Axa, Allianz and Zurich using the site, DFI has also recruited a team of three regional account managers. Paul Samways, director of DFI, said: "DFI is proving to be a great success and can be easily accessed and used by brokers and insurers alike. However, some areas of the fleet insurance sector are very traditional and can be sceptical about the DFI platform and other innovations within the market in general. "We have therefore appointed a regional management team to help our existing clients get the most out of the site and to enlighten those brokers yet to experience the DFI site. "One of the new team's first tasks will be to demonstrate the fantastic value the new free claims service offers. The penalties incurred with fleet claims and repairs are often costly to manage but brokers using DFI can now submit, manage and track claims for no extra charge. This will bring both increased savings and higher levels of customer service to the fleet insurance market" DFI debuted at the 2008 British Insurance Brokers' Association conference, and has since entered into negotiations with a number of potential new partners which it hopes to conclude within the next few months. Direct Fleet Insurance handles car and all other commercial vehicle fleet insurance cover. ENDS UK
Motor Insurance Aggregators: Still Much to Do The report has analysed 41 aggregator sites including new entrants into the market and changes that may have occurred to other sites since its first report in October 2007. Defaqto has carried out a detailed analysis of the market and this report includes:
Report author Mike Powell said: "Our first research in October 2007 identified a number of serious issues with the way some aggregator websites worked. The findings in our latest report show that many of these issues are still with us. "The aggregator market has boomed over the last two to three years and there have been many new entrants to the market. With the recent investigation by the FSA, it will be interesting to see how the market reacts," he added. ENDS One
Policy, One Payment, One Renewal Primo plc can offer you just one policy to cover all your vehicles with just one annual premium and one annual reminder. They also guarantee their best price to cover the very different insurance needs of each vehicle. Traditional insurers’ computer systems can only handle a single vehicle per policy. But as we have become more affluent and a second or third or fourth car more common, a few of our favourite insurers have designed their systems so that you can insure all your wheels at once under a single insurance policy. So whether you own a number of cars or a mix of different vehicles you could simplify your paperwork and save money too. Savings start when you are insuring at least one more vehicle than there are drivers and are greatest when that difference is really pronounced. The benefits for multi-vehicle owners are hugely simplified insurance documents, a single renewal date, the ability to add vehicles mid year whilst retaining the original renewal date and a premium that is generally much lower than the competition. ENDS Insurers
join police in crackdown on mobile phone use when driving As well as being stung with the fixed £60 penalty charge, motorists could be forking out £5.4m each year in insurance premiums – with some insurers increasing premiums by 18.1% because of the higher risk. In a survey of eight insurers from its extensive panel, AA Insurance even found one insurer refused to quote for a single mobile telephone offence. All other companies increased the premium from 4.2% to 18.1%. AA’s research also revealed that in real money terms the average insurance premium rises by almost £40 a year – and well over £100 over the three year offence period. Drivers attempting to use a hand held mobile phone also put themselves at risk of being charged with careless driving, which, coupled with a mobile phone offence, could lead to a driving ban. The AA survey found that half of the insurers refused to quote for careless driving offenders whilst others imposed premium increases of up to 50.5%. Simon Douglas, director of AA Insurance commented: "Driving whilst using a hand-held mobile phone places you at greater risk of having an accident – it slows reactions and you are less able to control the car. Insurance companies quite rightly take such offences seriously. "Many offenders are not aware of the premium rise and we hope that raising awareness of this extra cost will help people to think twice about chatting on a hand-held phone when driving," Mr Douglas continued: "In the event of an accident, police now routinely check mobile phone records to find out whether use of a phone was a contributory cause. Don’t even think about not telling your insurer. When you take out or renew your cover, you will be asked if you have incurred any endorsements on your licence. If you’re not truthful you could compromise your insurance cover." ENDS Swinton
launches two new brands as it reports record profit Looking ahead Swinton said it would launch a new web brand Diva, (car insurance for women drivers) and a new discount website, Motor Insurance Warehouse imminently. Patrick Smith, chief executive officer of Swinton, said: "Swinton is now in it’s 51st year of trading and we are very proud of our achievements with seven years of consecutive growth." "While many insurers and brokers are abandoning the high street, as illustrated by last week’s announcement from Endsleigh (see below), we strongly believe that consumers appreciate having a clear and fair choice with regard to how they purchase. Our significant investment in both on and off-line channels means we are able to offer excellent products via whichever approach our customers prefer." "Customers who choose Swinton via a website, down the telephone or by visiting the shops tend to stay with us once they experience the benefits of having an expert local advisor at the end of a local phone or the convenience of a branch on the high street. This goes against the received wisdom that a majority of modern consumers are totally price driven and promiscuous when it comes to their insurance renewal." "In addition to the substantial investment we continue to make in our personal lines offering, we also plan to continue our expansion within both the commercial and specialist insurance sectors. This will be achieved through both strategic acquisitions and organic growth over the next five years." ENDS Endsleigh
to close 119 Branches The Zurich owned broker said this followed a "strategic review of the company’s plans in two key areas – the source of future business growth and opportunities to enhance customer service with internet based solutions". In a statement Endsleigh said: "The Board believes that continued investment in Endsleigh’s already established web based offering, supported by an expansion of UK call centre operations, will greatly strengthen the company’s market position going forward". "Over 80% of Endsleigh’s enquiries originate from the internet and this figure is anticipated to increase further. More than 30% of new business sales are transacted entirely on-line on a self serve basis with the majority of the remainder handled over the telephone." Mike Alcock, Endsleigh’s managing director said: "The internet has rapidly become the channel of choice for people searching for insurance, often after office hours. We have very successfully capitalised on this growth area and over the past 5 years our client base has grown significantly". "Unfortunately, over the same time period, the number of people visiting our branches has dwindled to an extremely small number. Clearly our company resources must be aligned to consumer demand". To coincide with the proposed branch closures, Endsleigh said it plans to create new regional based relationship teams throughout the UK. It added around 50 existing sales employees would continue to service local relationships, particularly within the education and graduate community. ENDS Kwik-Fit
and SSP in electronic delivery of motor certificates The system will be implemented in readiness for the release of legislation which will permit the secure electronic delivery of motor insurance certificates. Kwik-Fit Insurance has signed a three year deal with SSP to implement SDX secure messaging. Launched late last year, SDX will provide a wide range of business benefits including improving customer service, cutting postage and administration costs, as well as wider environmental benefits. The growth of the internet has radically transformed the behaviour of consumers and their expectations. The internet channel now accounts for 70% of all Kwik-Fit Insurance’s motor insurance sales, making the secure exchange of digital information via email increasingly important. However, as standard emails are not secure and can be readily examined, duplicated and altered, insurance providers have been understandably reluctant to adopt it, particularly for client communications. SDX says it has overcome these issues by safeguarding the confidentiality of personal information and documents. The secure messages are kept safe from unauthorised access and tracked, providing a full audit trail, aiding compliance with Financial Services Authority client confidentiality rules and the Data Protection Act. Legislation allowing the electronic delivery of motor insurance certificates is expected to be introduced later this year (2008). ENDS Norwich
Union name to disappear after 200 years in Aviva rebranding move Once the transition, expected to take two years, is complete, Aviva will trade under a single brand across all of its businesses bar two. The RAC roadside recovery unit it bought three years ago will retain its current branding. The Norwich Union name will, however, disappear quickly. Andrew Moss, the insurance company's chief executive, would not say how much the rebranding will cost, but said the benefits would outweigh spending. "As we've become increasingly global, it is clear we need one name our customers can recognise wherever they are in the world," Mr Moss said. "By investing in a single name, we will amplify the global impact of our advertising and sponsorship spend." Mr Moss said the rebranding reflected the increasingly international nature of Aviva's business. After a series of acquisitions and expansions in the US, Asia and continental Europe, Aviva now earns around 60 per cent of its revenues overseas. However, the company will be acutely sensitive to a backlash in the UK, where its established brands have a long history and huge name recognition. Mr Moss described the Norwich Union name as part of the company's "treasured heritage". Norwich Union, which has 35,000 staff and almost 23 million customers in the UK, was founded in the East Anglian city in 1797, and has until now retained its separate identity despite the formation of Aviva in 2002, following its merger with CGU, the former Commercial Union insurance business. Similarly, Hibernian, Aviva's Irish business, is this year celebrating its 100th anniversary, having been launched in Dublin in 1907. It has 2,200 staff. Source: The Independent ENDS |
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