The Civil Liability Bill, in its current format, will enable insurance companies to be more competitive and to deliver the services that the driving public needs, at more reasonable costs for all drivers, according to First Central Group chief claims officer Jonathan Guy.
The Public Bill Committee of the House of Commons discussed several amendments to the legislation earlier this week, but a proposed change that would have given the Financial Conduct Authority (FCA) the power to force insurers to pass up to £1.3 billion in savings on to drivers failed to pass.
As it stands, the mechanism for monitoring insurers that justice secretary David Gauke introduced earlier this month is the only means being pursued to ensure they pass savings onto drivers. This will take the form of making certain information available to the FCA.
Guy commented: “We welcome the continued progress of the Civil Liability Bill through parliament this week. While the proposed amendment to enforce the passing on of whiplash reform savings was not adopted, we do remain committed to distributing the cost benefits that are derived from them.Indeed, we expect those who do not choose to do this will find themselves uncompetitive, and will lose business to those who do pass on the cost savings. In this way the market will effectively self-regulate and pass savings on to customers.”
“All bills go through multiple readings and multiple potential amendments. In the case of the Civil Liability Bill, in its current format it will still enable insurance companies to be more competitive and to deliver the services that the driving public needs, at more reasonable costs for all drivers. Insurance, and motor insurance in particular, is a highly competitive product, and insurance companies continually look to ensure that their pricing will be both profitable, and at the same time competitive.”