Emailed Certificates Could Save £11m
by Gill Montia
Story link: Emailed Certificates Could Save £11m
British Insurance Brokers’ Association (BIBA), the trade association of general insurance brokers, is supporting moves being made by the Department for Transport (DFT) to allow intermediaries and insurers to email motor insurance certificates to their clients.
The DFT is undertaking a consultation on the proposal, which BIBA believes could lead to approximately £11 million in savings in the intermediary sector alone.
Such a move would have a number of benefits. Electronic delivery would provide for stricter adherence to FSA contract certainty requirements, by allowing the customer to be in early possession of their certificates.
In addition, it would benefit the environment, as over 30 million vehicles are insured in the UK annually, requiring over 30 million letters to be printed and posted to consumers. This in its turn creates a need for stationery deliveries and packaging materials.
The DFT has stated that it is keen to encourage developments in technology which could bring benefits and it will be considering its final proposals on the matter once the consultation is completed on 18th June.
BIBA is of the opinion that the current system is outdated and that the motor insurance sector is being hampered by the existing requirements regarding insurance certificates.