Sarah Vaughan joined an industry panel hosted by Insurance Post to discuss the UK’s new Road Safety Strategy and what it means for motor insurers.
With a target to reduce road deaths and serious injuries by 65% by 2035, the strategy has clear implications for claims, pricing and underwriting.
A reduction in accidents should lower claims frequency. However, claims severity is likely to remain under pressure, driven by increasing vehicle complexity and repair costs.
At the same time, proposals such as mandatory training for new drivers could improve the risk profile of younger drivers, although insurers will need robust data before this can be reflected in pricing.
Listen to the full panel discussion.