Daily briefing: Tuesday - ABI calls for crackdown on young drivers

It’s good to see the ABI come out fighting on young drivers today. As motor hits the headlines alongside the lobbying body’s annual motor conference, newly appointed director-general Otto Thorensen has issued an uncompromising message: we’ve done our bit, now you do yours. The key issue he wants government action on is reducing accidents among young drivers, with legislation around, for example, a minimum learning period before a driving test.

Motor insurance as a whole is an extremely vexed issue at the moment, with the government concerned about the rising prices of the compulsory insurance. There are probes from the House of Commons transport select committee and the Office of Fair Trading underway. If premiums continue to rise, some form of government intervention is likely, in addition to its current plan to outlaw referral fees.

This coincides with the run-up to the expiration of the statement of principles, the industry’s agreement with government around the provision of household insurance to homes at risk of flooding. The first half of next year will see crunch negotiations between insurers and ministers on both motor and home.

The ABI director-general’s choice of young drivers as the theme for his keynote address is an interesting one. It suggests that, in the public-private bargaining that will characterise the debate in the coming months, this is seen as potentially a key win for the industry.

Learning from the little guy

Congratulations to Keelan Westall for bucking the economic trend, with today’s news that it has seen new business income soar 45% over the past year. Head of business Wayne Tonge attributes the spectacular growth to an internal reorganisation and good old-fashioned customer service. There’s quite a few of the bigger brokers out there who may look to follow suit.