BIBA conference countdown
As BIBA prepares for the big event, the number of market issues and debates continues to rise. BIBA’s Graeme Trudgill looks at two of the motor market’s hot topics
Graeme Trudgill
TECHNICAL AND CORPORATE AFFAIRS EXECUTIVE BRITISH INSURANCE BROKERS’ ASSOCIATION
Nearly there!
Electronic insurance certificates
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IBA has been lobbying for electronic motor insurance certificates since 2005. What at first seemed to be a farfetched request is now finally becoming a reality.
After many meetings with the Department for Transport and their lawyers, we have gone through the many potential problems, including concerns over potential fraud; how to surrender a certificate that is on
your computer; what to do about people that don’t have computers; the format in which it should be delivered or printed; and the redistribution of the MIB levy if certain rules are changed. BIBA have worked with the DFT and our peers at insurers to overcome all of these issues and find a way to make this a reality. DFT have agreed to BIBA’s changes to the draft legislation,
and DFT have also importantly confirmed in writing that the broker is considered the agent of the insurer during this transaction so that insurance brokers will be able to send e-certs directly (the legislation only mentioned that “insurers” were allowed) The legislation is now with
Parliamentary council and we are expecting this to be laid between 6 and 13 April - subject to any complications from the general election. The three pieces of legislation affected are:
● The Motor Vehicles (Electronic Communication of Certificates of Insurance) Order 2010
BIBA Motor Panel meets the software houses
BIBA’s Motor Panel regularly meets the software houses to discuss key issues. Graeme Trudgill summarises some of the recent talking points
hanging the system: Brokers
often stay with their software house for many years, thinking it is near-impossible to consider changing to another. However, advances in technology mean that changing is now much easier.
Mergers and acquisitions:
These can provide the opportunity for a broker to reappraise its
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technology requirements and its software house relationships. When brokers merge, there is often the inevitable problem of running two systems, then choosing which one to keep and then how to manage the data migration to the preferred system. The advice is to work as closely as possible with the new system
provider to ensure a seamless transfer. And cleanse any data which may have a limited shelf life, such as prospects, to avoid transferring redundant and outdated information.
Vehicle and address
validation: The system of continuous insurance enforcement (CIE) starts by Summer 2011, so it
● The Motor Vehicles (Third Party Risks)(Amendment) Regulations 2010
● Motor Vehicles (Third Party Risks) Regulations 1972 [Amended Version]
Five years ago BIBA
estimated e-cert delivery would save £11m. The costs saving in 2010 are likely to be even higher. BIBA has liaised with software houses to ensure their
preparedness so now everyone is waiting for a tick in a box from the Parliamentary council and then it’s all systems go!
is becoming even more vital that client information is accurate on the Motor Insurance Database (MID). The recent development of ‘vehicle validation’ can help, and many software houses now include a system for this. Data integrity demands that vehicle validation fully addresses the issue of mistypes which can create duplicate records on the MID. The main fear is of course a client having their vehicle confiscated at the roadside by the police due to a simple keying or typing error.
The BIBA Motor Panel meets on a quarterly basis and this article is based on a more detailed report that appeared in the Winter 2009 issue of BIBA’s
in-house magazine The Broker
APRIL 2010 insurancepeople 9
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