Motor insurance taskforce report a ‘fudge’
A motor insurance taskforce set up a year ago to address steep claims costs and rising premiums has published its final report.
The cross-governmental taskforce, which engaged with insurers, industry bodies and customers, was created last October to identify the causes of escalating motor insurance and propose steps to drive down the cost of claims.
Its report highlighted a strong commitment across departments to reduce vehicle theft and repair costs, while improving road safety and leveraging innovation to enhance efficiencies.
In terms of vehicle repairs, it has encouraged motor insurers to work closely with vehicle manufacturers to review the vehicle risk rating system, called for the commercialisation of new vehicle technologies to improve safety, and highlighted the need for skills development to ensure safe and efficient repairs.
Complex market
The report said: “For the last year, the motor insurance taskforce has been working across government departments and with our independent regulators to understand this complex market and agree on the comprehensive set of actions.
“We’ve focused on driving down the cost of claims – rooting out inefficiencies, increasing safety, and reducing opportunities for fraud and theft – to stabilise and ultimately reduce the premiums that motorists pay.”
A fudge
However, the Association of Consumer Support Organisations has said the report is a ‘fudge’ and its conclusions amount to ‘nothing substantial.’
Executive director Matthew Maxwell Scott said: “The ambitions of the taskforce in reducing sky-high insurance costs, and especially for certain groups, seem to have come to naught. Instead, all we have is a rehash of previous announcements by the government, the Financial Conduct Authority and insurers, and nothing substantial to alleviate pressure on consumers, which was the entire point of this initiative.
“The government’s promises when in opposition were that there would be a full investigation into the motor insurance market by the FCA and the CMA. Given the apparent failure of the taskforce to set out solutions to the problems facing drivers, it is time this idea was dusted off. The taskforce itself turns out to have been a fudge.”
