This idea will allow insurance companies to make a more realistic assesment of the risk attached to a particular vehicle or vehicles, instead of relying on a persons honesty to declare driving offences or driving experience, thereby high risk drivers pay more and savings can ideally be passed on to low risk drivers.
'Fronting', where high risk drivers are named as a secondary driver on a vehicle which they are the main user of, would be reduced as a direct result as it would no longer be cost effective to hide on someone else's policy. The reason young people pay more is because they are a greater risk and it is unfair on everyone else to pay hand over fist when they wrap a car around a tree.
Police would also save a large amount of time dealing with HO/RT/1s and enquiries with insurance companies as they will see exactly which 'J BLOGGS' from a family of three or four 'J BLOGGS' is allowed to drive a vehicle.
This would also cut down on identity theft and fraud as no licence would mean no insurance from the outset. Disqualified drivers could no longer apply for a policy of insurance to obtain a certificate and then cancel the policy.