Our new government must keep insurance on the post-election agenda

The general election is just weeks away and, when our new government is in place, much of its focus will be on Brexit negotiations and our relationship with the rest of Europe. However, there is a danger that some of the policies the insurance industry has worked hard on in the past twelve months will get lost in the shuffle.

The insurance industry is passionate about autonomous vehicles and the potential they have to make our roads safer and improve mobility for those who struggle to get from A to B. The Vehicle Technology and Aviation Bill, can ensure the UK remains a leader in the development of driverless and has to remain on the agenda after the election.

While the future of our roads is driverless, today’s motorists are struggling to keep up with the spiralling cost of motor insurance. While some media reports have pointed the finger at ‘greedy’ insurance companies dining out on healthy profits, this could not be further than the truth. AXA, for example, makes just 2% profit on car insurance.

There are a number of reasons for the recent increases. Insurance Premium Tax is on the up (and will reach 12% in June), vehicle repairs are becoming more and more expensive and the cost of fraudulent personal injury claims are taking their toll on British drivers. If it is reintroduced, the Prisons and Courts Bill could cap compensation for minor whiplash injuries, making fraud much less lucrative, helping insurers save on claims costs and funnelling money straight back into driver’s pockets in the form of lower premiums.

The Bill could also to address the issues caused by the baffling decision to cut the personal injury discount rate to -0.75%. I don’t think anyone would argue with fair compensation for those who suffer long-term injury but there are ways to help the few without penalising the many. As well as the damaging impact on the NHS, the change will cause the cost of car insurance to increase even further, with young motorists, who already pay the most, likely to be hit the hardest.

I’m pleased that the Conservative Party has pledged to crackdown on whiplash claims in its manifesto, but there is still a real danger that the Bill will not make it back on the agenda in the upcoming Queens Speech. If these reforms are delayed customers will have to wait longer for their cost savings. Given that the current government has worked as hard as the industry to tackle some of these problems we must hope that the Bill will come back as soon as possible.

Whoever holds the power after 8 June, must keep the momentum going. The time and energy that has been spent on whiplash reforms, driverless cars, and to fix the broken discount rate mustn’t go to waste, even on a agenda dominated by Brexit and working out our differences with our continental cousins.