The British Insurance Brokers’ Association (BIBA) has called on the Government to implement an eight point plan to reduce the spiralling cost of motor insurance.
BIBA has submitted an eight point plan to the Transport Minister ahead of today’s Transport Select Committee inquiry second evidence session. BIBA’s Head of Corporate Affairs, Graeme Trudgill, said: “There is no market failure. We believe that signposting customers, particularly young drivers, to a source of help is a vital part of the solution to access affordable insurance.”
He added: “We think the key priorities for the Government should be to introduce Continuous Insurance Enforcement, implement changes to reduce the cost of bodily injury claims and importantly signpost customers to a source of help.
“Signposting is an important solution at no cost to Government. There are key benefits to consumers, particularly those in the more vulnerable age groups. This will help more people find insurance, meaning fewer are left uninsured and unprotected.”
BIBA submitted an eight point plan in writing to the committee and gave evidence at the first session of the Transport Select Committee inquiry in November. BIBA believes its plan will help to tackle the increasing cost of insurance and recommends:
1. Government must introduce Continuous Insurance Enforcement (CIE);
2. Signpost people to a relevant broker where they can find competitive cover (particularly young or non-standard drivers);
3. Regulate comparison sites to the appropriate standard;
4. Review Pass Plus;
5. Review the driving test;
6. Engage with Lord Justice Jackson’s review of civil litigation costs;
7. Refrain from any further increase in insurance premium tax; and
8. Provide access to driving licence records.
In BIBA’s formal written response, it outlined the reasons for the recent increases in the cost of motor insurance as claims inflation, reduced investment income of insurers, competition, commoditisation, insurer withdrawals, uninsured driving and fraudulent claims.
Source : BIBA Press Release