Weekly Motor Insurance News

UK

ABI continues focus on road safety with updates to its Salvage Code of Practice  
The Association of British Insurers (ABI) has updated its voluntary Salvage Code of Practice to reflect advances in vehicle technology, including electric and hybrid vehicles, megacasting, and reusable parts. Developed with input from insurers, the Motor Insurers’ Bureau, and Thatcham Research, the code provides clear guidance on how to categorise written-off vehicles to ensure unsafe ones don’t return to the road. It also enhances procedures for handling vehicle disputes and classification. The code uses categories A, B, S, and N to distinguish between scrap and repairable vehicles. The ABI continues to advocate for making the code legally binding.

Top 10 motor insurers see net loss of 20,000 existing customers to rest of market
New data from LexisNexis Risk Solutions shows that the UK’s top 10 motor insurers lost 20,000 net policies in late 2024, gaining 400,000 customers but losing 420,000 to smaller competitors. This shift suggests the rest of the market is closing the gap, as more consumers shop around amid ongoing cost-of-living pressures. Daily searches for new motor insurance deals rose to 30,000 in the second half of 2024, up 4% year-on-year. Cancellations remain a concern, with rates at 13% for top insurers and 18% for others. Premiums are stabilizing, and niche providers are well-positioned to compete in 2025.

Australia

Australian competition watchdog approves IAG’s acquisition of RACQI
The ACCC has approved Insurance Australia Group’s (IAG) acquisition of RACQ Insurance Limited, stating the deal is unlikely to significantly reduce competition in home, contents, or motor insurance markets. The review noted RACQI’s declining competitiveness and limited ability to differentiate on price or coverage. The watchdog concluded that IAG’s increased market share wouldn’t allow it to control prices or services, given the presence of strong competitors like Suncorp, Allianz, and QBE. The deal includes a 90% share purchase, excluding RACQ’s roadside assistance business.

Germany

Insurance: Biker accidents more expensive than car accidents
A new report from R+V Insurance shows that while motorcyclists in Germany cause fewer accidents than car drivers, the damage from motorcycle crashes is significantly higher—averaging €7,000 per claim versus €5,000 for cars. Only 6 out of 1,000 motorcycle policyholders filed a claim in 2024, compared to 48 out of 1,000 car drivers. The lower accident rate is partly due to motorcycles being used mainly in summer and for fewer kilometers. Most motorcycle accidents result from riders losing control, especially in curves or at high speed. Unlike cars, motorcycles rarely have minor incidents like parking bumps, and the risk of serious injury is much higher due to the lack of a protective structure.