Having a nice holiday, relaxing at the beach as you nervously glance at your phone waiting for traffic lights to change or an update on your PCR tests? Lucky you, some of us have been slaving away digging out insurance news at Insurance Edge and planning a caravan weekend at Skegness in October. Living the dream.
Let’s get into this week’s news bites.
START: EV-ER READY
Electric vehicles, or EVs as they’re known in green circles are looking like the next big thing, not least because governments around the world want to tax carbon use and phase out petrol/diesel engines. But when it comes to repairs of EVs the insurance sector is still lagging a bit behind.
So it’s interesting to read this week that companies like AW Repair Group are using Thatcham Research training facilities to get on board with every aspect of EV recovery, repair, or salvage/storage. Whether you agree with the politics or not, you have to embrace the future – that’s how every good business works.
RUN: FREE TRUCKER TRAINING
News from Pertemps about free training for LGV drivers got us thinking; where there is demand, fill the gap. The shortage of lorry and delivery drivers in the UK is an opportunity for brokers across the land.
If you already have a book of van/commercial drivers then reach out and see if there are any upgrades in cover they need. Maybe a promo on vehicle conversions, diesel to battery power is a smart move? This driver shortage is likely to continue if people continue to WFH and want everything from Deliveroo or Amazon Prime direct to their door. Make the most of it we say.
GROW: STRAIGHT FROM THE HORSE’S MOUTH
Talking of new opportunities, the government is thinking of amending the driving licence requirements, not just to speed up the flow of new HGV drivers, but also to abolish the need for an extra driving test for towing a heavy trailer, or horse box.
There are 30,000 tests every year for this licence category, so it takes up lots of public-sector time in admin. These are just proposals right now, but if the rules are changed then brokers can offer towing cover as a bolt-on. Everyone from antiques and salvage dealers to horse riders, classic scooter restorers to part-time event caterers. The market will expand IF the rules are changed – just saying.
AND GROW: MOTOR BROKERS BRACE YOURSELF FOR 2022
An Opinion piece by Mark Townsend at BGL touched on the ‘Great Reset’ that is heading towards the car insurance sector in 2022, on the back of the FCA ruling on loyalty penalties.
If drivers are to get cheaper insurance as a reward for loyalty, then where does that leave comparison websites and brokers who offer a sweet deal to entice in new customers?
It’s going to be interesting to see how true loyalty can be won using a range of rewards, not just a price promise, a 5% reduction guaranteed every year, assuming your circumstances don’t change. As Mark notes in his BGL piece, it’s going to be crucial for motor brokers to really understand their customers and the type of insurance they actually need in the future.
The hybrid home/office working model adds another twist to 2022 as well, because many commuters will feel they shouldn’t have to pay the same rates if they are only working three days a week in a town or city centre.
We will leave you with those tricky riddles to solve, until next week.