Insurers urged to adopt new driving licence data sharing initiative to prevent claim fraud

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The insurance industry is being urged to sign up to a new driving licence data sharing initiative designed to speed up claims processing, reduce fraud and ensure fair premium pricing.

 

Called MyLicence, the new system will allow insurers, brokers and comparison websites to access DVLA information on motoring convictions and penalty points when providing motor insurance quotes.

 

The ABI and the Motor Insurers’ Bureau (MIB) has worked jointly with the DVLA and the Department for Transport to develop the programme which is due to go live during the summer of 2014, with industry testing starting in February 2014. An industry hub, managed by the MIB, will enable users to securely obtain the driver data from the DVLA.

 

According to the ABI, checking the details about a potential policyholder's driving history as soon as they apply for a policy will mean claims can be processed more quickly.

 

At present, similar checks only happen at the point of a claim being made. Checks will also be able to be easily made at renewal and in the case of any policy adjustments.

 

The ABI believes that the ability to use driving licence information will bring added benefits for participants through cost savings thanks to the ability to better identifying fraudulent non-disclosure, and reducing the need to obtain paper copies of licences from policyholders.

 

Data matching with the DVLA has shown that up to 23% of motorists fail to accurately disclose their driving record, including disqualifications.

 

Keith Morris, chair of the Insurance Industry Access to Driver Data (IIADD) programme board, and chief executive of Sabre Insurance, said that getting driver data from the DVLA will be transformational for motor insurers.

 

"The financial benefits from more efficient administration and fewer fraudulent applications will be of huge benefit 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," he said.

 

"The key challenge for all insurers right now is to make sure they are able to be one of those early adopters.”

 

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Mark Dugdale is the editor of Claims Media. Mark welcomes articles, letters or feedback from readers and can be reached via mark.dugdale@barkerbrooks.co.uk