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MyLicence brand will reduce vehicle insurance fraud and is due to roll out in 2014

The ‘MyLicence’ 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 benefits of this are huge and motor insurers, brokers, comparison websites and software providers are all being encouraged to adopt the ‘MyLicence’ brand.

The insurance industry, through the Association of British Insurers (ABI) and 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 beginning in February 2014. An industry hub, which will be managed by the MIB, is currently being developed and will enable the motor insurance market to securely obtain driver data from the DVLA. The aim of this is to improve the pricing of premiums against accurate driver information and thus reduce 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 this information will bring immediate benefits for participants by producing:

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

For honest customers, MyLicence offers very clear benefits and insurers will be better equipped to identify fraud, accurately price risk, speed up applications and cut through some of the administration involved. By using MyLicence, insurers, brokers and comparison websites will achieve real savings which can then be passed on to customers, and will also help with customer service matters too.

In order to receive the DVLA data, every broker, insurer and price comparison website must use the official hub. This is supported by a range of standard and governance, and should give the public every assurance that their data is being gathered securely and appropriately.

For anyone who is honest, this is a great initiative as it will go a long way to prevent some forms of insurance fraud – and so for any ‘good guy’ in the industry, it is a huge plus. At Westhill Insurance Services we believe in being transparent and honest, so the arrival of MyLicence will be a welcome addition in the war on fraud. If you are seeking vehicle insurance of any kind, just speak with one of our friendly and professional team and let Westhill Insurance get you on the road faster, cost effectively and with the right insurance for you. Don’t forget we are here for you, whatever your insurance needs.

Contact Westhill Insurance Services, today.

Posted By Ryan Jennings on 29th January, 2014