InView Autumn/Winter 2015

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16 InView | An independent eye on insurance When will we start to see fully autonomous vehicles? Sooner than people think. There’s the Google car out in the US, and a number of UK initiatives. We have one in Milton Keynes with the Lutz Pathfinder pods running electric autonomous vehicles around the town. More and more of these things are being developed – for example in 2017 Volvo will be running trials in Gothenburg, Sweden. New car adverts on TV are all about autonomous emergency braking systems and the ability of vehicles not to crash. Virtually every new car coming out has either got these features as an option or as standard. This is happening now, so you’re probably looking at no more than 10 to 15 years until the whole landscape is transformed. Some people say this transformation is 30 years away. It isn’t. And it will completely revolutionise motor insurance as we see it today. There are big opportunities in the legal space too. For Weightmans there is a huge opportunity to be a thought leader in this area. It is developing at a rapid pace. What are the main technology issues and challenges facing the MIB and the insurance industry generally? For the insurance sector I’d split the technology challenges in to three areas: the growth and profitability of your organisation; regulatory change; and data and advanced analytics. In terms of growth and profitability, the big question is how can organisations make technology do more with less, while supporting operational transformation? Then there’s the customer wanting to do business anywhere, anytime. The industry needs to keep up with those expectations and demands because you’ve got to do business with customers on their terms. To be able to give a consistent experience across multiple technology channels is a massive challenge. You’ve got to keep your brand fresh and interesting as well. You can become stale very quickly. The main challenge for the business is prioritisation and securing capital for maximum competitive impact at the same time as satisfying regulatory change, and this applies to all three areas I mentioned. © Copyright. Weightmans 2015. All rights reserved.
Issue 2 | Autumn/Winter 2015 17 In the insurance industry, regulatory change is becoming more pervasive – for example through ‘Solvency II’ requirements, IT security, and security management. All these things eat up resources, but if you don’t invest in technology you’ll die very quickly. The whole digital space requires a different way of thinking. You need to build your team with the right skill sets. What are the priorities for the MIB? We’re making data available for the insurance industry. A lot of what we do is data asset management for crossindustry databases. One of our key initiatives is to make this data available at the point of quote. The holy grail for the insurance buying process is to reduce the number of questions put to customers and acquire the data at the point of quote from trusted and validated data sources. We’ve already started this process by building the MyLicence service which enables customers to give their driving licence number and we pull in the data from the DVLA. As a result, drivers don’t have to answer all the usual questions, such as whether they have a driving licence, what type it is, when they received it, and whether they have any points on it. Our ABC Roadmap is being developed to include claims data and a big part of our work over the next two years is rolling this out to the insurance industry. The ABC stands for ‘Accurate pricing, Better customer experience, and Combating fraud’ and we believe there are significant rewards for organisations that come together to share high grade, trusted data through initiatives including MyLicence, NCD (No Claims Discount), CUE (Claims and Underwriting Exchange) and MIAFTR (Motor Insurers’ Anti-Fraud and Theft Register). Access to these data services is facilitated by the MIB Hub, which copes with 300 transactions a second – leading-edge technology that we simply couldn’t have built a decade ago. What does the future look like for the insurance sector? Technology is transforming the way the motor insurance industry does business. We are looking at fast-approaching, seismic change, both to customer behaviours and our internal systems. While it’s true that opportunities will also present themselves, we as an industry must invest in the technology and people skills necessary to keep pace with the velocity of change. All commercial developments will create opportunities and risks and therefore require insurance intellect to help manage and transfer risk to enable investment. If I was asked what keeps me awake at night, I’d say firstly, information security; secondly, information security; and thirdly, information security.
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InView Autumn/Winter 2015

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