Two leading UK insurance companies have agreed a deal to reduce the cost of third party motor claims between the two companies in a move that could point to the future of the insurance market. The agreement between, the UK’s largest insurer, Aviva, and Ageas as yet will not impact on the Irish market, but insurers here will be sure to take note of any cost saving potential.

The agreement comes in the wake of the 2014 Competition and Markets Authority’s (CMA) report on motor claims, which has opened the way for insurance companies to find more cost effective methods to handle non-fault claims.

The agreement sees the two companies use an online portal for communication reducing the need for calls and letters. This speeds up claims by matching details quickly and putting all details in a single location for faster resolution. The agreement also prevents the insurers from charging one another unnecessary costs.

Aviva’s Claims Director, Andrew Morrish, commented, “We are proud to work with Ageas on this new initiative which has the potential to revolutionise the way insurers handle third party claims. We want to work with all insurers to establish this solution as standard for the motor insurance market. We believe the portal can play a key role in improving insurer efficiency, enabling portal users to settle third party non-fault claims much quicker and it shows how insurers can build trust in the market.”