The UK government has unveiled its first comprehensive road safety strategy in over a decade, aiming to cut deaths and serious injuries on Britain's roads by 65% by 2035, with a more ambitious 70% target for children under 16.
The measures, which include tackling drink driving, improving training for young drivers, mandatory eye tests for older motorists, and new vehicle safety requirements, are expected to have significant implications for the motor insurance sector.
Move benefits insurers
Motor insurers and brokers stand to benefit from fewer high-cost claims if the strategy succeeds in reducing accidents.
Road traffic collisions currently result in thousands of claims each year, and with around one in three fatalities involving someone driving or riding for work, workplace motor insurance could see particular impact. National consultations on lowering the drink-drive limit, introducing alcohol interlock devices for convicted drivers, and enforcing stricter checks on uninsured vehicles are likely to reduce fraudulent or repeat claims, while also lowering overall risk exposure for insurers.
The government’s plan to address inexperienced drivers through a minimum learning period and better young driver training may also reduce claims frequency and severity. Drivers aged 17 to 24 account for only 6% of licence holders but 24% of fatal and serious collisions, a disproportionate risk that insurers must currently price into premiums. Similarly, mandatory eye tests and potential cognitive assessments for older drivers could help mitigate claims caused by age-related impairment.
Vehicle safety upgrades mandated under the strategy, such as autonomous emergency braking and lane-keeping assistance, are expected to further lower claims costs. Insurers may need to reassess risk models and premiums to account for the adoption of these technologies, which could reduce claim severity but may also increase repair costs due to advanced vehicle systems.
The focus on vulnerable road users, including motorcyclists and children in deprived areas, as well as the introduction of a National Work-Related Road Safety Charter, highlights potential opportunities for insurers to develop specialised products or premium incentives that reward safer behaviour and compliance.
Market reaction
Admiral welcomed the strategy, highlighting the insurance implications: “We see the devastating impact that dangerous driving can have on road users every day, so we welcome the Government’s ambition to reduce road deaths and serious injuries with its new road safety strategy."
The motor insurer also said that the introduction of penalty points for not wearing seatbelts, and reducing the legal alcohol limit in England and Wales, could help encourage safer driving habits.
“We also welcome mandatory eye tests for those aged over 70," Admiral said. "However, our data shows that drivers under 25 years old are almost twice as likely to be involved in a serious crash than older drivers, so it’s great to see initiatives that help to foster better driving behaviours in younger motorists being considered, such as more practice before sitting your test."
Other industry experts have welcomed the strategy. RAC road safety spokesperson Rod Dennis noted that tackling drink and drug driving, uninsured vehicles, and young driver safety will have a direct impact on insurance claims and costs.
Similarly, IAM RoadSmart and AA Charitable Trust leaders highlighted the potential for long-term reductions in claims frequency and the benefits of treating road safety as a shared responsibility between government, businesses, and insurers.
