This week the travel insurance sector continues to gnash its teeth as the UK government messes with quarantine rules, the EU makes a sensible decision on No Claims Discount proof and Ford’s move on data-sharing points the way ahead for car insurers
Let’s get started.
START: EU SEES THE LIGHT ON NCD PROOF
For decades drivers who have worked outside their home country for a year or two have faced losing all their hard-earned NCD bonus. It has been especially tough for drivers in Ireland, where an expat can face a car insurance quote of 3000 euros, even if they have an unblemished driving record in the UK, Netherlands, Spain etc.
So this week an EU committee suddenly shocked IE magazine by agreeing that a common standard on claims history could be agreed, and could be shared across the EU. Let’s hope the UK government gives the nod on following suit on this matter.
On the downside, the EU ruled out compulsory insurance for electric bicycles, which was looking like a nice little earner for some specialist brokers.
RUN: DATA SHARING MAKES PERSONALISED QUOTES A REALITY
There has been a buzz about driver data for a few years now and this week By Miles pulled off a deal with Ford, which will see data on trips being shared via the Ford Pass app. It also gives details on attempted thefts too, so this is gold dust for brokers and insurers alike.
By understanding exactly how someone drives, which routes they use, where they park etc., insurers can build PAYG car insurance that really nails down the risk, per trip. Not annually, by crude postcode data, but daily. Yep, daily motor quotes, that’s the dream.
IE predicts that someday that dream will become a reality.
GROW: IS MARS ON THE AMBER LIST?
That could be a valid question if Space X ever starts offering holidays to the red planet, but in the meantime UK travel insurance brands must cope with the ever-shifting decisions of the UK – and other governments – on travel.
Whether you fancy tying the knot in a Scottish castle, or want some sunshine in Ibiza, the risk of quarantine rules changing, or official advice at the destination country suddenly prompting an exodus, means confidence is very low. Travel insurance brand Staysure joined the Day of Action protest this week, demanding some clarity from the government. Fact is that insurers and brokers can only develop the right travel products if the rules are made clear.
AND GROW: DIGITAL TWINS
Are you a High Net Worth broker? If the answer is yes, then a read of IE’s guest article by Erinrose Sullivan on digital twins will be of interest. Insuring works of art, antiques or vintage jewellery and watches is notoriously difficult, mainly because it’s often hard to value something ultra-rare. Then there’s the whole issue of a detailed description if something gets stolen from a museum, gallery or country house. Not everyone has a super detailed spec sheet plus hi res images.
So yes, a digital twin of a rare object is a good idea and on a side note, it’s interesting to see watch brands like Breitling start to use blockchain passports as a means of tracking genuine Swiss watches, as opposed to fakes. This tech has a real value to brokers because it means you can accurately value a genuine watch using the manufacturer data, plus the cancellation of that passport if the watch is stolen means its secondhand value has just decreased. It can never be officially serviced, or legitimately sold on.
Insurance is ultimately about protecting life, health and assets and what we love to see at Stubben Edge is insurers identifying a problem, and then coming up with a solution. And then we add some extra value.
Bye for now.