Shifts in Motor Insurance
IA approves SAIC Motor Insurance for captive operations in Hong Kong
12 Aug 2025
The Hong Kong Insurance Authority (HKIA) has approved SAIC Motor Insurance Limited, a captive insurer established by SAIC Motor Corporation, marking the second such authorisation in 2025. HKIA CEO Clement Cheung said the regulator aims to address the risk management needs of Mainland Chinese state-owned and private enterprises, as well as local multinational groups. The authority is also exploring ways to broaden captive structures and expand risk coverage to boost Hong Kong’s position as a captive insurance hub.
ICICI Lombard partners with Mahindra Finance to expand motor insurance distribution
11 Aug 2025
ICICI Lombard General Insurance has partnered with Mahindra & Mahindra Financial Services to expand motor insurance distribution across rural and semi-urban India. Through Mahindra Finance’s network of over 1,300 offices covering 516,000 villages and 8,000 towns, customers will gain access to ICICI Lombard’s full range of motor insurance products. The collaboration aims to boost financial inclusion and insurance penetration among Mahindra Finance’s 11 million customers. ICICI Lombard CEO Sanjeev Mantri said the partnership will help the insurer reach deeper into rural markets, while Mahindra Finance CEO Raul Rebello highlighted its role in strengthening customer financial security.
Aviva fraud team help catch classic car insurance fraudster
11 Aug 2025
A Kent man, Danny Phipps, received a 23-month suspended sentence for orchestrating an elaborate insurance fraud involving classic cars and construction tools, using falsified documents and staged photos to claim over £14,000 from Aviva and RSA. The case highlights broader trends in the UK, where insurers detected 84,400 fraudulent claims in 2023, costing £1.1 billion, with motor fraud being the largest contributor. Fraudulent claims drive up administrative costs and premiums for honest policyholders, while undermining trust in underwriting. Insurers like Aviva and Zurich are increasingly investing in analytics, machine learning, and cross-industry intelligence to detect and prevent fraud.
Rain, Risk & Repair: 33% Surge in Claims, 80% Lack Engine Cover, Non-Metros Hit Hard
11 Aug 2025
During the monsoon, average motor insurance claims in India rise 33%, from ₹30,000 to ₹40,000, mainly due to engine and electrical damage. Despite high adoption of Roadside Assistance (75%), 80% of policyholders lack engine protection, highlighting a major coverage gap. Tier-2 and Tier-3 cities account for 75% of monsoon claims, reflecting poor infrastructure and road resilience. Hatchbacks lead in claim volume (54%), while SUVs incur the highest repair costs at ₹60,000 on average. Experts urge vehicle owners to opt for essential add-ons like engine protection, RSA, and zero depreciation to mitigate seasonal risks.
Fears of rise in uninsured drivers as insurance tax receipts soar
7 Aug 2025
UK drivers faced a 9% rise in insurance premium tax (IPT) last year, raising concerns that higher costs could price some motorists out of coverage, especially young or low-income drivers. The AA urged the Treasury to cut IPT by 25% for all drivers and 50% for newly qualified motorists. Average motor insurance premiums jumped to £622 in 2024, partly due to rising claims, vehicle theft, and fraud, though early 2025 saw a 7% drop. The ABI called for government action to address these underlying cost pressures, including boosting repair sector capacity. A Treasury-led taskforce is reviewing solutions to curb high motor insurance costs, with a final report expected this autumn.
