BVRLA News
www.bvrla.co.uk October/November 2011
The newsletter of the British Vehicle Rental and Leasing Association
Insurance Taskforce sets out message of self-help Self-drive hire insurance premiums are likely to fall from their current high levels – but it is hard to say when, or by how much. In the meantime, the rental sector needs to work on lowering its risk profile.
back on what they perceive as ‘high-risk’ business. If a rental company is located in an insurance fraud hotspot it is likely to encounter problems. It is believed that ‘cash for crash’ schemes cost the insurance industry around £350m a year.
That was the conclusion of the first Insurance Taskforce meeting held by the BVRLA, which was attended by the Association of British Insurers (ABI), and representatives of the insurance broker sector and vehicle rental industry. Attendees were told that underwriters of the fleet insurance market had not made a profit since 1994. Instead, fleet insurers had relied on investing premiums to generate income – a strategy that has become unsustainable given the turmoil that has hit global stock markets.
The ABI said that the rates charged for replacement vehicles and prolonged credit hire periods were also pushing up insurers’ costs and premiums.
“By getting a better understanding of the market, we hope to come up with some ways of improving the supply of self-drive hire insurance and lowering premiums,” said BVRLA chief executive John Lewis. “As an industry we can’t just sit by and watch rental companies closing down because they can’t find or afford insurance.”
At the same time, the association wants to develop guidance to help members lower their future risk profile and demonstrate this to potential insurers.
While some insurers have pulled out of the self-drive-hire market, others will only deal with existing customers or have cut
The BVRLA agreed to work with the insurance industry to help lobby for changes in the personal injury compensation system. It is also going to try and educate insurers about how the vehicle rental industry works and the steps already being taken to reduce risk – by using the association’s RISC online database, for example.
“We have to accept that the insurance environment has changed and premiums are unlikely to fall to former levels any time soon,” said Lewis. “But I believe there are measures we can take to make the rental industry a more attractive market for insurers.” n
The BIg Event: BVRLA Annual Dinner 2012 Business champion Lord Digby Jones and comedian Fred MacAulay will entertain guests at next year’s BVRLA Annual Dinner. Taking place on 8 March 2012 at the London Hilton on Park Lane, the dinner is set to be the social highlight of the year for anyone involved in vehicle rental or leasing. The BVRLA will also recognise the efforts of another set of Industry Heroes – read more inside. Further information and a booking form can be downloaded here
In this issue BVRLA calls for clearer, simpler car tax The company car tax regime needs an urgent update, the BVRLA will tell Treasury Minister Chloe Smith page 3 Licence checking service starts work The BVRLA has launched a new, easyto-access, low-cost, overnight driving licence checking service page 5 Hitachi Capital ideas Hitachi Capital Vehicle Solutions runs three electric vehicles and has supplied 16 more. Head of pricing Chris Shore shares his EV experiences page 6 Fleet profile: Citroën Citroën is hoping its stylish DS line will prove popular with userchoosers and get it back on fleet choice lists page 8 Fleets Backing BEN How is automotive industry charity BEN’s used car donation scheme doing 18 months on? page 9
— Promoting responsible road transport since 1967 —