Motor Insurance at a Crossroads: Reflections from Our London Networking Event

I had the pleasure of hosting an insightful and thought-provoking event in London last week, exploring one of the most pressing questions for our industry: Is motor insurance at a crossroads?

Joined by an exceptional panel of experts – Stephen Long our Claims & Operations Director, Doug Woodley Head of Insurance and Strategic Insight at Thatcham Research, and Fraser Lyall, Policy Advisor, General Insurance, at the ABI. Together, we delved into the forces shaping the future of the motor market. What followed was a lively discussion that left us with more questions than answers, but also a clear sense of urgency and a real clear need for us all to work together.

From the outset, it was evident that technology is one of the key factors that sits at the heart of this transformation. Stephen shared compelling data showing that while motor claims frequency has been falling, severity is rising sharply. Modern vehicles are packed with advanced systems that make repairs more complex and costly. Doug and Fraser highlighted how software-defined vehicles – cars where features can be activated remotely via subscription – are changing the game entirely. Imagine buying an electric vehicle and upgrading its power with a tap on an app. For insurers, this creates a moving target: risk profiles that shift overnight, often without visibility.

This lack of access to data emerged as a critical theme. Without it, insurers are forced to price based on assumptions, building “fat” into rates to cover unknowns. Fraser warned that if this continues, we could face a market where only vehicle manufacturers insure their own cars. That’s not a future any of us want. The solution? Greater collaboration and regulatory support to ensure insurers can access at least a minimum data set.

We also explored whether the traditional annual insurance cycle can survive in this new world. Dynamic or monthly pricing may become inevitable, but that raises tough questions about customer expectations and government pressure to keep premiums down.  Customers want frictionless experiences, not lengthy data-sharing processes, but they also expect personalised pricing. It’s a delicate balance.

Underlying all of this is trust. Younger generations are cautious about sharing data unless they see clear value. As Doug noted, the challenge is demonstrating that value upfront – showing customers that sharing data leads to better deals and better experiences. At the same time, insurers must grapple with legacy systems and regulatory frameworks that were built for a very different era.

My biggest takeaway? The problem isn’t on the horizon – it’s here now. Connected cars are already on our roads, yet our industry still operates on 12-month policies and traditional underwriting models. We need to move faster, and we need to do it together.

Insurers, brokers, OEMs, and regulators all have a role to play in shaping a fair, functioning market that works for customers.

Thank you to our brilliant panel and everyone who joined the conversation. These sessions aren’t about having all the answers, they’re about asking the right questions and sparking collaboration. The future of motor insurance is being written today, and it’s up to us to make sure it’s a story of innovation, trust, and customer value.