Latest Trends and Developments in the Insurance and Automotive Sectors

Motor Insurance Taskforce’s decisions likely to be ‘unpopular’ with drivers

5 Nov 2025

The UK government’s Motor Insurance Taskforce, created in response to rising premiums, is preparing major reforms that could reshape how drivers insure and operate their vehicles. According to Mark Bailie, CEO of Compare the Market and a taskforce member, the proposals may include a national 20mph urban speed limit, expanded low-emission zones, and a review of spare part costs — measures expected to be unpopular but necessary to cut claims and reduce premiums. He noted that while motor insurance rates have recently fallen by 10–15% from their peak, affordability remains a concern as over one million UK drivers remain uninsured.

Lockton and Apollo launch autonomous vehicle insurance program

4 Nov 2025

Lockton has launched a new insurance facility in partnership with Apollo to support companies working with autonomous vehicle (AV) developers and operators. The program offers $25 million in AM Best “A” rated capacity, addressing unique risks at the intersection of casualty and cyber. It is designed to fill coverage gaps for businesses involved in AV partnerships, especially as traditional insurers raise attachment points or exclude such risks. Trevor Smith from Lockton noted that as AV technology advances, many companies face challenges in securing adequate coverage for these emerging risks.

Germany: Here, the cost of owning a car has risen particularly sharply.

4 Nov 2025

Car owners are facing significant cost increases for vehicle maintenance and insurance this autumn. Car insurance premiums rose by nearly 11% in September compared to the previous year, while repair costs increased by 5.5%. Other vehicle-related expenses, such as inspections and car washes, also saw notable price hikes, with inspections up 4.8% and washes rising by 3.6%. These increases are outpacing general inflation, which was 2.4% during the same period. Since 2020, car insurance premiums have surged by 43.6%, reflecting the rising costs of repairs and parts.

Toyota Offers Three Year, Fixed Price, Car Insurance Deal

3 Nov 2025

Toyota is offering a new three-year fixed-price insurance plan for customers purchasing a new car between November 1, 2025, and January 31, 2026. The insurance covers nine Toyota models, including hybrids and electric vehicles, with prices starting at £300 for the Aygo X and £450 for the Yaris and Yaris Cross hybrids. This offer guarantees no price hikes for three years and provides clear, transparent cover without hidden fees. Eligible customers, aged 27-76, with a clean driving record, can benefit from this hassle-free, long-term insurance option. Full terms are available on Toyota’s website.

Car insurance: Virtually no profit expected in 2025 either.

3 Nov 2025

The GDV reports that German car insurers will still not make a profit in 2025 due to ongoing high repair and parts costs. Despite premium increases, insurers are expected to spend 4.5% more on claims compared to last year, as repair costs and parts prices continue to rise faster than inflation. Over the past two years, insurers have faced nearly €5 billion in losses due to these rising expenses. While premiums are forecast to increase by 14% in 2025, the industry’s profit margin remains minimal, with only a slight technical profit of 3 cents per euro of premium.

Transportation costs rose 3.27% in October and are projected to increase by 30.5% by 2025.

3 Nov 2025

The cost of transportation in Argentina rose by 3.27% in October, bringing the total increase for 2025 to 30.5%. The rise was driven by financial costs, insurance, lubricants, and fuel prices, with the financial cost growing the most at 10.36% due to higher interest rates. Fuel, a key component in transportation costs, increased by 21% over the past five months. Despite these hikes, the sector is facing challenges due to lower economic activity, declining diesel consumption, and deteriorating infrastructure, all of which put pressure on transportation companies. The outlook for the coming months remains uncertain, depending on exchange rates and fuel price trends.

‘An undue burden’: Lawmakers talk alleged lapses in vehicle insurance

2 Nov 2025

The Pennsylvania Senate Transportation Committee recently discussed how the state handles alleged lapses in vehicle insurance, a system affecting all drivers. Each month, PennDOT suspends over 15,000 registrations due to suspected insurance gaps, but nearly a third are rescinded after proof of coverage is provided. Lawmakers are considering implementing an online verification system to reduce errors and prevent unnecessary suspensions, similar to systems in 21 other states. PennDOT’s ongoing modernization efforts aim to integrate this system, which could help ensure continuous coverage verification and reduce the burden on insured drivers.

Allianz UK partners with Ticker for connected motor insurance

31 Oct 2025

Allianz UK has partnered with Ticker, a managing general agent specializing in connected motor insurance, for a five-year deal starting November 1, 2025. The collaboration will offer coverage for young, older, convicted, and low-mileage drivers, combining Allianz’s underwriting and claims expertise with Ticker’s data-driven pricing and fraud detection. The partnership aims to expand Allianz’s presence in the UK market while promoting safer driving through telematics. Both companies plan to use the agreement to enhance road safety, particularly for young drivers.

Ageas Working With RAC on Legal Expenses

31 Oct 2025

Ageas has partnered with the RAC to provide legal expenses insurance to its customers across motor, van, and home insurance policies. The RAC will offer expert legal support for non-fault motor claims and legal disputes related to home insurance, available 24/7. This collaboration follows a competitive tender process, and the RAC, already Ageas’s breakdown assistance provider, will now exclusively handle legal expenses for Ageas’s customers. Both companies aim to enhance customer service and provide valuable support for unexpected legal issues.

Chaos over 2025 incentives: the platform is paralyzed, with doubts over the validity of vouchers.

31 Oct 2025

The launch of the 2025 EV incentives in Italy has faced significant issues, with the platform for voucher issuance crashing for 24 hours, creating doubts about the validity of the vouchers. The glitch, caused by technical problems and the lack of prior beta testing, disrupted the process and delayed the system’s reopening. Although the vouchers reserved between October 22-23 will be validated, there are concerns that some may not meet the legal requirements for eligibility. Additionally, the process now mandates that vehicles to be scrapped must be delivered to dealerships, complicating matters for dealers already struggling with the system’s inefficiencies. Despite these challenges, the validity of the issued vouchers is not in question.

Why car insurance costs have soared (and what drivers are doing about it)

30 Oct 2025

Car insurance premiums have surged by 55% since February 2020, driven by higher vehicle prices, costly repairs, and more severe accidents. Many drivers are feeling the financial strain, with some cutting back on other expenses or even driving without insurance to save money. Experts suggest shopping around and considering higher coverage limits to cope with rising costs. Some, like Brandy Levene, are reducing other lifestyle costs, while others, like Zoe, have struggled to keep their insurance after financial hardships. The rising costs are particularly challenging for families with teenage drivers, who face steep premiums to add a young driver to their policy.

SAT | All insurance companies will have to pay VAT to the tax authorities, and the service will be more expensive from now on.

30 Oct 2025

The Mexican government has approved a new tax measure that will increase insurance premiums starting in 2026. The SAT (Tax Administration Service) will now require insurers to pay VAT on the money they receive from third parties involved in claims, which will lead to higher costs for consumers. The Mexican Association of Insurance and Bond Agents (AMASFAC) estimates that premiums could rise by 10% to 20%, particularly for auto and major medical insurance. The VAT will be applied to the total insured amount, affecting policies with larger coverage. Customers are advised to check with their insurers for specific adjustments.

Zurich launches AI research center, “it will revolutionize our business.”

29 Oct 2025

Zurich Insurance has launched its own AI research center, the Zurich AI Lab, in collaboration with the University of St. Gallen (HSG) and the ETH Zurich’s Agentic Systems Lab. The initiative aims to transform the insurance business model by leveraging AI not just for efficiency, but as a powerful tool for business transformation. The lab will operate in Zurich, St. Gallen, and Singapore, with a multidisciplinary team of doctoral and master’s students, along with Zurich executives and professors from HSG and ETH. CEO Mario Greco emphasized that the AI Lab will drive innovation to revolutionize Zurich’s business model and create the next generation of insurance solutions.