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Motor insurance market encouraged to sign up to MyLicence to reduce fraud and improve applications

Motor insurers, brokers, comparison websites and software providers are being encouraged to adopt the ‘MyLicence’ brand to enable them to get DVLA data on motoring convictions and penalty points when providing motor insurance quotes.

The brand has been developed to help promote the initiative that will enable the industry to get driver licence data from the DVLA when a person applies for motor insurance.

The industry, through the ABI and the Motor Insurers’ Bureau (MIB) has worked jointly with the DVLA and the Department for Transport to develop the data sharing programme that is due to go live during the second quarter of 2014, with industry testing starting in February 2014.

An industry hub, managed by the MIB, is being developed and will enable the motor insurance market to securely obtain the driver data from the DVLA, with the aim of improving the pricing of premiums against accurate driver information and reducing fraud.

The MIB will work with participants using the hub to ensure they comply with the technical standards and have adequate security and data protection safeguards in place.

The ability to use driving licence information will bring clear and immediate benefits for participants through:

  • Significant cost savings through better Identifying fraudulent non-disclosure, and reducing the need to obtain paper copies of licences from policyholders. Data matching with the DVLA showed that up to 23% of motorists fail to accurately disclose their driving record, including disqualifications.
  • Quicker settlement of claims by checking at the application stage, instead of, as at present, asking the policyholder at point of any claim.
  • More accurate risk-pricing, ensuring premiums reflect correct driving record.

Keith Morris, chair of the IIADD Programme Board, and Chief Executive, Sabre Insurance, said:

"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.

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

Ashton West, Chief Executive, of MIB and IIADD Project Executive, said:

"By displaying the MyLicence logo on websites, notices to policyholders and promotional material for new customers, the motor insurance industry will help to build recognition for this important initiative. Customers will begin to understand that they need to provide their driver licence number to get a quote.

“To get the DVLA data, every broker, insurer and price comparison website will need to use the hub. This is supported by a range of standards and governance, and should give the public assurance that their data is being gathered securely and appropriately.

“Some of the industry’s leading software houses, price comparison sites and brokers are already gearing up and preparing their systems to link to the hub early in the New Year.”

John O’Roarke, Managing Director, General Insurance at LV=, said:

"My Licence offers clear benefits to the industry and honest customers alike. Insurers will be better equipped to identify fraud, accurately price risk, speed up applications and improve administrative efficiency.

"Using My Licence will enable insurers, brokers and comparison websites to achieve real savings that can be passed on to customers and to improve customer service."

Further details about the hub are available from the MIB at mylicence@mib.org.uk and by visiting www.abi.org.uk/MyLicence.


Last updated 01/07/2016