UK Car Insurance Industry Watch, November 2007

This regularly updated section of the HomeApproved web site will cover the latest trends, research, opinion and developments in the UK car insurance sector.

Stop, look, listen, live at the official home of the Hedgehogs!
The Hedgehogs web site provided by the Department of Transport provides invaluable information for children to stay safe on and near Britain's roads. The site contains information on how to stay safe when:

1. STAY SAFE ON FOOT
   Get some street sense and stay safe when walking or crossing the road.
2. STAY SAFE ON YOUR BIKE
   Skateboarding and cycling are really healthy, but check out these safety tips. Find out what to wear and stuff to remember when riding your bike!
3. STAY SAFE ON THE STREETS
   Learn what road signs mean and then test your road safety skills in our quiz.
4. ROAD SAFETY HANDBOOK
   Your complete index to staying safe on foot, on wheels, and on the road.
5. THE GREEN CROSS CODE
   Read their guide to the safe way of crossing the road.

Be Safe Be Seen
As the nights draw in and the evenings get darker earlier it is worth encouraging your children to wear something bright and take extra care when out and about near roads:

• Make sure your child can be easily seen, especially at night, on dark days and in bad weather.
• Bright or fluorescent clothes show up best by day, especially in dull or misty weather.
• By night, reflective material is best and shows up in car headlights - fluorescent clothing doesn't work after dark.
• Reflective tape can be put on clothing, school bags and equipment.
• It is against the law to cycle at night without a white front light, a red back light and a red reflector at the back, so make sure all the kids bikes are properly equipped and working.
• Cross the road at the safest place possible. e.g. zebra, pelican, puffin and patrolled crossings.
• Use the Green Cross Code: Stop, Look, Listen.
• If your children are out at night, educate them to choose routes that are well-lit by streetlights and to always cross at well-lit places.

ENDS

Norwich Union Insurance announce operational changes
Norwich Union Insurance (NU) has announced strategic changes to its operating model, designed to drive growth and improve service by making the most of its brands, distribution network and underwriting expertise.

Igal Mayer, the chief executive at the company, said the move – which will include changes to the executive team – would make it less complex, more able to adapt quickly to rapidly changing market conditions, and more connected to its customers.

The changes will follow the announcement by NU's parent company Aviva of its vision for "One Aviva, twice the value", which will focus on new growth and efficiency targets. RAC will become further integrated into NU Insurance, retaining its brand and dedicated operations and service teams.

Mr Mayer said: "We have strong consumer brands, we are the number one insurer in the UK, and we have superb expertise in underwriting and managing risk. These changes will enable us to exploit fully those advantages and make sure we are offering the right products at the right price and getting them to market via the best channel".

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Penalty Points Double for Speeding Drivers
Motorists face being banned from driving for only two speeding offences under a new government plan to double the fixed penalty for exceeding the limit by a wide margin.

Drivers caught driving at 45mph or above in a 30mph limit are likely to receive a higher-rate fixed penalty of six points and a £100 fine, up from the existing flat rate of three points and a £60 fine.

Government ministers want to send the message that excessive speeding will lead more quickly to an automatic six-month driving ban for totting up 12 points within three years.

More than 1.1 million drivers have six points or more on their licence and, under the new law, could be banned immediately for one more offence. For further relevant information please read our speed camera page.

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SSP gears up for electronic delivery of motor insurance certificates
SSP has signed a multi-year exclusive contract with SDX Messaging, a provider of secure digital communications solutions, ahead of the Department for Transport’s (DfT) expected decision to make the electronic delivery of motor insurance certificates legal in early 2008.

Under the terms of the agreement SDX will work in partnership with SSP to provide its technology to SSP’s intermediary and insurance company customers in the European Union and Africa.

The growth of the internet has radically transformed the behaviour of consumers and their expectations. The internet channel accounted for 36% of all motor insurance new business sales in 2006 (Datamonitor) and 40% of all vehicle excise duty (DfT), making the exchange of digital information via email increasingly important.

However, as unprotected digital content can be readily examined, duplicated and altered, intermediaries and insurers have been limited in their ability to adopt it, particularly for client communications. Now, however SSP and SDX have removed these limitations.

Earlier this year BIBA estimated that the digital delivery of insurance certificates would save brokers £11m.

Source: Insurancetimes, 9th November 2007.

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NU telematics system highlights driver fatigue
More than half the motorists monitored by Norwich Union’s (NU) telematics devices are exceeding the government-recommended maximum journey time without taking a break, running the risk of fatigue-induced collisions, said the insurer.

Kay Martin, head of telematics, proposition and strategy for NU, said fatigue and nodding-off behind the wheel was one of the leading causes of collisions in the UK.

Martin said the telematics programme – launched just over a year ago – had been invaluable in highlighting to fleet managers the mistakes and risks drivers were taking by measuring the length of travel, speed and time of day of each journey.

According to statistics compiled by the Department for Transport, 1,965 collisions and 69 fatalities were caused by driver fatigue in 2006.

Telematics is connected to global positioning system technology and integrated with computers and mobile communications technology. The technology monitors a motorist’s driving behaviour and then transmits the information back to the insurance company.

Royal & SunAlliance and Brit also offer telematics. The parent companies of AXA and Groupama are understood to be trialling the system.

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£110,000 for Diesel Death
The family of a man who died when his motorbike skidded on a diesel patch was awarded £110,000 compensation this month by the Motor Insurers' Bureau (MIB).

In the first successful claim of its kind in Britain. Split diesel is notoriously dangerous for motorcyclists, because it is hard to detect unless you spot the tell-tale rainbow pattern on the tarmac or smell it in time to avoid it, and bike tyres lose grip on contact with the fuel.

Accidents involving motorbikes and diesel are common, especially around filling stations, roundabouts and junctions where the fuel spills out from overfilled vehicle tanks. Diesel cause twice as many serious motorcycling accidents as ice.

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