MyLicence initiative expected to reduce average costs of insurance policy by £15 for motorists
CGI (TSX: GIB.A) (NYSE: GIB) today announces it has signed a contract with the Motor Insurers’ Bureau (MIB) to deliver the industry-wide ‘MyLicence’ service to the UK General Insurance Industry.
By accessing a wide range of data such as a driver’s endorsements, disqualifications, points on their licence and the time a licence has been held directly from the Driver and Vehicle Licensing Agency (DVLA) via the hub, the motor insurance industry is able to gain a more accurate and complete picture when pricing risk and policies. In the future, insurers, brokers and price comparison sites will simply ask drivers for their Driving Licence Number (DLN) at the time of quote, which will enable accurate data to be accessed via the MyLicence hub. Ultimately this will enable a quicker and more efficient quote process and support improvements in the settlement of claims by checking at the application stage, rather than when any claim is made.
The MyLicence hub was developed as part of an initiative with MIB, the DVLA and the Association of British Insurers (ABI) to enable the motor insurance industry to obtain accurate information on drivers in order to enhance understanding, price risk and help cut fraud. The service is now being rolled out across the industry.
Fraud occurs when policyholders purposely omit information or select more favourable options when applying for motor insurance. Addressing this at the point of quote or renewal, is set to be one of the key benefits of MyLicence and the initiative will ultimately ensure a fairer deal for the honest customer by providing more accurate pricing. For example, the ABI estimates that one in 14 motorists does not realise penalties on their licence have expired.
Neil Drane, Head of Database Services at MIB commented: “Fraud is costing honest UK motorists significant amounts in higher insurance premiums. The MyLicence service is currently being rolled out and we are encouraging a phased take-up across the industry whereby insurers will be able to reduce the cost of cover and make motor insurance pricing more accurate. For honest policyholders to be picking up the tab for opportunistic and deliberate fraud is simply unfair.”
Neil Sadler, VP, Head of Insurance at CG UKI, added: “Following our close partnership with the MIB, DVLA and the Insurance Industry the core data hub is now live and ready to be used by the motor insurance industry. The MyLicence data hub will deliver accurate information rapidly at the time of quote. As take-up occurs we expect that queries could run into the billions each year. It’s another example of how CGI is helping drive innovation at the heart of the insurance industry.”
The technology to facilitate MyLicence is one of 25 UK wide projects that the government’s digital cabinet office describes as “exemplary”.
The MyLicence initiative is the first step of many to providing accurate data to the insurance industry at point of quote. No Claims Discount (NCD) entitlement data will follow later in 2015 and there are plans afoot to use claims data from the Claims Underwriting Exchange (CUE). All this should mean fairer and more accurate pricing for motorists in the future.