ABI announces new motor insurance initiative

The ABI has unveiled a series of steps the industry is taking to combat the rising costs of motor cover.

In collaboration with its Consumer Advisory Group, it will commission research into various social policies focused on helping low-income households manage their insurance costs.

It has also published a roadmap outlining 10 steps aimed at tackling insurance costs for all drivers.

Steps include greater transparency around insurance costs to support better decision-making, exploring partnerships with police to aid in the recovery of stolen vehicles, doing more to crack down on insurance fraud, improving road safety and infrastructure, supporting new drivers, and reducing the impact of the Personal Injury Discount Rate (PIDR).

It will also continue to reform whiplash claims, advocate for safety-focused vehicle technology, argue for lower Insurance Premium Tax (IPT), and work with government, vehicle manufacturers and independent mechanics to create a robust repair sector that can fix a broader array of vehicles.

Mervyn Skeet, director of general insurance policy said: We know that insurance costs are putting strain on household finances, so we’ve been working hard to find solutions. Some of these actions we can do quickly, others will require time or assistance from the regulator or government.

“Regardless, we will continue to do what we can under our new strategy to help consumers access the products that are integral to financial wellbeing and play a key role in the nation’s financial resilience.”