Majority of insurers now using the MyLicence service
Three of the top five motor insurers are now using the MyLicence service. Furthermore, all the major price comparison websites are capturing the driving licence number, as part of their quote process, resulting in capture rates of up to 40%.
MyLicence allows the insurance industry real time access to a customer’s driving licence record, held by the DVLA, at the point of quote.
As the majority of the industry have completed system changes relating to compulsory regulatory changes, such as Insurance Premium Tax and price transparency, attention is now turning to business improvement developments, such as MyLicence. This renewed focus has helped drive market take up from 36% at the end of 2016 to above 50% by the end of quarter 2 this year.
Those currently using the service can achieve these benefits:
- Accurate pricing as driving licence data is sourced from the official record, not relying on the customer’s memory
- Better customer journey as the customer is asked fewer questions and
- Combatting fraud by reducing driving history misrepresentation.
Work is also continuing to develop new methods by which the comparison websites can support the MyLicence service, including direct connection to the service.
Kaushik Patel, Head of Data Services at MIB said, “Clearly the momentum has shifted and sooner rather than later those not using the MyLicence service will be in the minority, and may begin to find themselves at a significant competitive disadvantage.”