ABI calls for more whiplash reform

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The Association of British Insurers (ABI) has called on Ministers to introduce further reform to road traffic accident (RTA) claims after revealing that the average cost of a motor insurance policy fell by 9% in 2013.

 

James Dalton, the ABI's head of motor insurance said that the fall proved that insurers were fulfilling their commitment to pass savings from changes to the civil litigation system to motorists.

 

"But more can be done to get premiums even lower, which is why the Government needs to press ahead with tackling exaggerated and fraudulent whiplash claims which honest motorists are sick of paying for through their insurance premiums," he said.

 

"The car insurance market has faced a number of increased cost pressures in recent years, including dealing with an explosion in the number of whiplash claims, the excessive legal fees attached to low-value personal injury claims, lower investment returns and higher capital costs associated with catastrophic injury claims.

 

"Despite these pressures, the market has remained highly competitive with motorists able to shop around for the best car insurance deal."

 

Dalton's comments came after the launch of the ABI's new average motor premium tracker, which will report car insurance price movements on a quarterly basis.

 

Based on data provided by the ABI's members (who represent 90% of the UK's motor insurance market) the tracker found that the average private comprehensive motor insurance premium was £370 during the last quarter of 2013, nearly £40 lower than the last quarter of 2012.  

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Marek Handzel

Marek Handzel is the editor of Claims Magazine. Marek welcomes articles, letters, or feedback from readers and can be reached by emailing marek.handzel@barkerbrooks.co.uk