Bob's blog: New motor regs are no cause for panic

So here we are in 2011, with all sorts of changes in the pipeline for us insurance brokers – new regulations to absorb and insurers desperately trying to make underwriting ends meet while cutting costs. Then there’s the impact of the economic climate on clients’ businesses.

Over the past couple of weeks or so we’ve seen headlines in the insurance media that 50% of brokers were unaware of the impending Continuous Insurance Enforcement (CIE) regulations.

Bearing in mind these new regulations – to reduce uninsured driving – were mooted several years ago, I double-checked in case I could have been described as one of the miscreants.

No, I was right – if the broker is doing his or her job properly and notifying the Motor Insurance Database (MID) of a change of insurer, cancellation and so on, then they need make no material change to their procedures. Phew!

Okay, so there are some insurance brokers or agents who will not be doing their job properly and some insurers, too, who will be dilatory in notifying the MID of the relevant insurance details. And there will be some confusion relating to motor trade where blanket certificates are in force.

But, overall, this regulation is there to trap the intentional uninsured driver or those who leave uninsured vehicles on the road, rather than those that may fall foul of any insurer or broker or other system inefficiencies.

So, it’s another piece of regulation that could affect all of us, both as car owners or as brokers, who have an obligation to supply current information.

However, with the advent of number plate recognition cameras, those of your clients with fleets or those in the motor trade would be well advised to know what to do if a vehicle is stopped by the police for an alleged insurance breach.

This brings me to the purpose of my column. As many of you may know, I have long been an advocate of communication with our clients – and not just when there is a premium to pay or a claim to fast-track.

This regulation is an ideal reason to make contact with clients who have fleets or motor trade policies. Helpful information never goes amiss, and demonstrating that you have the client’s interest at heart will cement any business relationship.

Another extract from the Allianz Commercial survey on CIE regulation that has created much media hype is that 87% of those brokers surveyed considered there was a lack of support from their insurer partners.

So be it. But maybe your clients think there is a lack of support on insurance matters from you.

And, blindingly obvious though it may be, if an insurer is slow in notifying the authorities – ultimately the DVLA – of insurance policy changes, then your client will blame you should they receive any heavy duty correspondence, a clamping authority or indeed a fine from the DVLA.

It could be out of your hands that one of your clients becomes alienated and ultimately you could lose the client through the inefficiency of others.

Bob Pybus is a director of The Institute of Insurance Brokers (IIB) and director of NPA Insurance Broking Group.