Guest blog: the motor insurance market is always changing

Craig Dickson, DAC Beachcroft

It seems that the only constant feature of the motor insurance industry is that it is always changing.

I will be taking part in a panel discussion at the ABI Motor Conference next week to discuss the current landscape and to look ahead at what regulation and legislation may be on the horizon that will present challenges AND opportunities for the industry. I am expecting some lively debate.

At DAC Beachcroft, we have championed the potential benefits of the reforms introduced to motor insurance and law over recent years. Many of the changes brought about by legal and regulatory evolution, whether the "LASPO effect", ongoing whiplash reform or focus on young driver safety have had real, tangible, effects on how we do business.

That is not to say that adopting and adapting to constant change has been easy but it does show that we work in an industry which is both resilient and has a genuine appetite for innovation and development, while keeping the customer's needs at the very core.

That market "resilience" is important. The motor insurance industry's ability to withstand significant pressures while pursuing evolving business models, in a changing regulatory landscape, is often overlooked as we sometimes find ourselves hypnotised, understandably, by the challenges that lie ahead.

2015 and beyond

There are two things that I see as crucial for the immediate and long term health of the motor insurance industry:

1. The environment must be one in which it is easy to do good business, while preserving the disciplines of governance, compliance and customer focus; and
2. The momentum of the current motor reform programme must not slow.

There is still much to do. If you look at the regulatory environment from a claims perspective alone, any motor claim may be influenced by the oversight of the FCA, Financial Ombudsman, SRA, Claims Management Regulator, Information Commissioner and the courts; that list is by no means exhaustive. Technology, such as telematics, in-car equipment and social media will play an increasing part in the future of driving as well as how customers purchase and use motor insurance.

Working closely with the bodies that govern the motor insurance industry will be one of the keys to making sure that product innovation and delivery continues and that, as well as being resilient, motor insurance remains relevant to the customer in the future.

After all, only 24 months after the ABI Motor Conference we will be preparing for the first drivers born this century to be taking to the roads. Will we be ready?

Craig Dickson is Head of Motor at international law firm DAC Beachcroft.