Insurance industry could save £750m a year with Norwich firm’s portal
- Credit: Archant © 2010
Norwich-based Validus-IVC said it could save the motor insurance industry £750m a year and drive down the cost of premiums with the launch of a new web portal.
The EDP Future 50 firm believes its new vALIDATE system has the potential to save policy holders £10 per year in the credit hire market by stripping away dysfunction and boosting efficiency.
And it said the savings could be substantially more if it includes all perils such as personal injury.
The £1.6m system, developed at its headquarters on Princes Street, allows both claimants and insurers to track a claim online from start to finish.
This increased transparency in the market aims to remove conflict, lower costs and provide faster settlements, according to the firm.
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It comes after a report last year by the Office for Fair Trading (OFT) estimated that their would be extra consumer costs of £225m from credit hire. But having insurers and claimants using the same system would save this money, said the company, which employees 156 staff and is on course to record a £8.4m turnover this year.
Mike Srokowski, chief executive officer, said a pilot project using the system with one major insurer improved operational efficiencies by 30pc.
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But Ed van Rooyen, chief operating officer, said if the portal was adopted by both sides as an industry-wide solution to disputed claims it could become a 'clearing house' for all UK third party motor claims.
He said: 'A well thought out portal with transparency for both sides, where the claim could be seen at any time equally, removes conflict and delivers faster settlement and lower cost, ultimately benefiting the consumer.'
'The portal can also deal equally well with third party motor claims made by solicitors under Common Law or Civil Procedure Rules and resolve many of the contentious issues that exist between insurers and organisations representing the claimant.
'Our only interest is applying technology to deliver transparency and efficiency to settling third party motor claims. Both sides will benefit because submitted claims are settled quickly and cheaply.
'Since 2007 our technology has managed 250,000 third party mobility claims through to settlement.
'The portal is the next big step in using the knowledge we have gained in the last five years to bring order to what is often called a dysfunctional marketplace.'