The establishment of a new database developed by LexisNexis is drawing support among some of the leading motorist insurers in the United Kingdom as a way to eliminate fraud among drivers that lie about their past driving habits in order to earn discount rates, according to Craig Beattie, a senior analyst in Celent's insurance practice working out of the consultancy's London office.
In the UK, drivers can build up what is known as a “no-claims discount” (NCD), which Beattie explains is measured in the number of years of insurance an individual driver compiles without making a claim.
According to MoneySupermarket.com, insurers calculate the no-claims discount in different ways, but it usually builds up each year to a maximum of five years. Motorists can typically expect to earn a 10 percent discount after one year of claim free driving; a 20 percent discount after two years; 30 percent after three years; 50 percent after four years; and up to 75 percent after five years.
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
