Global Shifts in Motor Insurance, Pricing, and Road Safety
Motor premiums to shift as Policybazaar ditches flat-rate pricing
13 Jan 2026
Policybazaar.com says motor insurance premiums will shift to personalised pricing in 2026, based on individual driving behaviour rather than flat rates. Using real-time data and risk signals such as past driving patterns, insurers aim to fairly reward low-risk and low-usage drivers. The company also expects digital tools to significantly improve access to and settlement of insurance claims, reducing friction for customers. Changes to third-party motor insurance pricing, last updated in 2022, are anticipated due to inflation and evolving risks. These reforms align with growing demand for long-term insurance products instead of annual renewals.
SAAQclic fiasco: the AMP criticizes the SAAQ for several shortcomings
13 Jan 2026
Quebec’s Autorité des marchés publics (AMP) has criticized the Société de l’assurance automobile du Québec (SAAQ) for multiple failings in managing its SAAQclic digital project, citing poor planning, irregularities in the selection committee, contract modifications, and favoritism toward SAP. The AMP ordered real-time audits of the main contract and related agreements, semi-annual reporting, and a self-assessment of SAAQ’s contract management. The report highlights that no other vendor received the advantages granted to SAP, and that SAAQ’s market analysis was neither neutral nor thorough. The SAAQclic launch in February 2023 faced major issues, leading to long queues, and the digital transition is now projected to cost taxpayers at least CAD 1.1 billion, CAD 500 million over budget. Interim CEO Annie Lafond confirmed SAAQ will implement the AMP’s recommendations and submit an action plan on schedule.
Many auto insurers slashing rates as claims drop
13 Jan 2026
Many auto insurers across the US are cutting vehicle insurance rates after a notable decline in claims, reversing expectations of rising costs. Companies such as Progressive, State Farm, and Allstate have filed for rate reductions in multiple states, benefiting drivers with clean records as insurers recover profits lost during the post-pandemic period. However, pricing gaps are widening, as high-risk drivers—such as those with DUIs or teen drivers—continue to face sharp premium increases. Although average premiums edged down slightly in 2025, experts warn the trend may be temporary due to rising repair costs, legal changes, and inflation. Broader factors like technology, litigation, and weather are expected to put upward pressure on rates again.
South Korea:Auto insurance premiums rise 1.3-1.4% as insurers end 5-year freeze
13 Jan 2026
Auto insurance premiums in South Korea are set to rise by 1.3–1.4% in 2026, ending a five-year freeze since 2021. Major insurers, including Samsung Fire & Marine, Hyundai Marine & Fire, DB Insurance, and KB Insurance, will implement the increases to offset rising claims and losses. This marks the first premium hike in half a decade, reflecting broader pressures in the South Korean motor insurance market.
Allianz deploys AI agents for motor, health claims
13 Jan 2026
Allianz SE has partnered with AI firm Anthropic to expand the use of AI across operations, software development, and claims processing. The collaboration will integrate Anthropic’s “Claude” models into Allianz’s internal platform, support multi-step automation for motor and health claims, and ensure regulatory compliance through recorded AI decision-making. The goal is to reduce manual work, speed up first payments, and enhance customer experience while keeping humans involved in complex cases. Allianz already uses AI for roadside assistance, automated food-spoilage claims in Australia, and faster pet insurance processing in Germany. The company is also investing in workforce training to build AI capabilities.
Children do not travel safely in cars: high risk for 75% of young passengers
12 Jan 2026
A recent EU study highlights that up to 73% of children under two travel in forward-facing car seats, significantly increasing injury risk in accidents—by up to 50% for young passengers. Experts recommend that children up to four years old remain in rear-facing seats for as long as possible, unless using full-body airbag-equipped seats with comparable protection. Many parents switch seats early for reasons like eye contact, legroom, or reducing motion sickness, despite the safety risks. In Germany, authorities emphasize that premature forward-facing travel raises the chance of severe neck and spinal injuries. Selecting appropriately designed rear-facing or full-body airbag seats is crucial for protecting young children in vehicles.
Exchanging your driver’s license: Who’s next?
12 Jan 2026
In Germany, the mandatory exchange of old driver’s licenses continues, with owners of card-format licenses issued between 1999 and 2001 required to swap them for EU-standard, tamper-proof versions by 19 January 2026. The process is straightforward, requiring no tests or medical checks, just ID, a biometric photo, and the current license, with a fee of around €25. New licenses are valid for 15 years, and existing driving classes are retained. Missing the deadline incurs a €10 fine, though driving remains legally permitted; issues may arise abroad, especially when renting a car. Special rules apply for those living outside Germany or holding commercial licenses.
Can reforms offset Thailand non-life catastrophe exposure?
12 Jan 2026
Thailand’s non-life insurance sector continues to grow despite natural catastrophe exposure and economic uncertainty, supported by regulatory reforms and steady demand in health and motor coverage. Reforms such as stricter solvency rules, EV policy standards, named-driver rules, and co-payment clauses aim to strengthen underwriting, while reinsurance and catastrophe modelling help manage major risks. In 2024, non-life premiums rose 0.6% to ~$9.2 b, with motor insurance dominating at 56% and non-motor lines boosted by health, fire, and liability coverage. The market is expected to grow 1.5–2.5% in 2025, driven by tourism, economic recovery, and rising health demand, though risks from climate events, geopolitical tensions, and financial volatility persist. Major events like the 2025 Myanmar earthquake highlight the importance of risk modelling and reinsurance in absorbing potential losses.
Northern Ireland ranks second for young driver insurance costs
12 Jan 2026
Young drivers in Northern Ireland face some of the highest car insurance premiums in the UK, averaging £1,470, just below London, with certain areas exceeding £2,000. Eighteen-year-olds, especially in Belfast, can pay over £3,000, though premiums drop significantly at age 19 as driving experience increases. High costs are attributed to limited driving history and higher accident risk among young drivers, who account for a disproportionate share of serious collisions. CompareNI.com suggests solutions like telematics, advanced driving courses, adding experienced drivers, and careful vehicle selection to reduce premiums. Despite some regional relief, young drivers in Northern Ireland are unlikely to see major decreases due to persistent risk factors.
US Market: Arity Research Suggests More Drivers Would Accept Telematics/Data Sharing
12 Jan 2026
Research by Arity shows that drivers are increasingly open to telematics-based car insurance, with 82% of policyholders viewing telematics apps positively. Consumers, including older drivers, are willing to share driving data to receive personalized pricing, rewards, and discounts, while younger drivers favor dynamic models like monthly adjustments or fuel cashback. Telematics also enables insurers to offer value-added services such as roadside assistance, creating new engagement and revenue opportunities. Overall, usage-based insurance is becoming a competitive necessity, allowing insurers to provide fairer pricing, enhance customer loyalty, and innovate beyond traditional policies.
UK Govt Road Safety Strategy: Comment and Analysis
12 Jan 2026
The UK government’s new road safety strategy, including lower alcohol limits, longer waits for full licenses, and mandatory eye tests for drivers over 70, has received mixed industry reactions. AXA welcomed the focus on speeding, mobile phone use, and uninsured drivers, emphasizing education in schools and the use of data to reduce accidents. ThingCo highlighted that the riskiest period is the first three months after passing a driving test, urging measures like telematics, passenger limits, and graduated speed restrictions for new drivers. Howden stressed that telematics can transform young driver behaviour, providing real-time feedback, safe-driving incentives, and data-driven insights to prevent accidents. Overall, insurers see a key role for technology and education in improving road safety beyond headline policy changes.
Even good drivers are slapped with higher premiums on renewing motor insurance policies
8 Jan 2026
Chinese insurers have raised motor insurance premiums during the peak renewal season at the start of 2026, affecting even drivers with no prior claims. In some cases, renewal premiums increased by as much as 46% despite clean driving records. The hikes reflect broader adjustments in China’s motor insurance market rather than individual risk alone. These increases come amid wider industry changes, including new insurance models and shifting market dynamics.
Can you have two motor insurance policies for one car? What you need to know about the new rules
8 Jan 2026
From 2026, Ukraine will strictly prohibit having more than one valid MTPL (motor third party liability) insurance policy for the same car at the same time. Although this rule formally took effect on 1 January 2025, full enforcement will begin on 1 January 2026 with the launch of a centralized verification system run by the MTIBU. Previously, drivers could hold multiple policies due to lack of cross-company checks or by buying a new policy before the old one expired. Under the new system, insurers will automatically check registration numbers and VINs, and if overlapping policies are detected, all earlier contracts will be canceled. As a result, only the most recently issued policy will remain valid.
Indication motor premium falls slowing despite 13% yearly drop
8 Jan 2026
Motor insurance premiums in the UK fell by 13% over the past year, saving drivers an average of £111 annually, according to the latest Confused.com and WTW Car Insurance Price Index released in January 2026. Average cover now costs £726 a year, down from £837 in January 2025, with the biggest reductions seen among young drivers, particularly 17–18 year-olds. Overall, premiums have dropped 27% since peaking in late 2023, driven largely by a sustained decline in personal injury claims following whiplash reforms. However, the pace of price reductions is slowing, with late-2025 showing minimal quarterly change. Rising repair costs and claims inflation could push insurers to raise prices again in 2026.
Motorists will have to pay up again in 2026: car insurance is going up, and here’s why.
7 Jan 2026
In 2026, French drivers can expect another increase in car insurance premiums, with rates projected to rise 4–5% on average, according to insurer Leocare. The hikes are driven by sharply higher costs for spare parts—up to 42% for electronic components—more expensive and complex labor, and rising repair times. Additional factors include overcharging for services like windshield replacement and regional differences, with cities like Marseille facing higher premiums than Lyon. Modern vehicles with advanced sensors, screens, and driver-assistance systems further contribute to the increased costs. Overall, these structural pressures are pushing insurance prices higher for drivers across France.
