Whiplash Reform - At The Ready
At any other time whiplash reform would have been the biggest news in town. It is understood that the new Rules will be published any day now. For those of us who worked through the watersheds of Conditional Fee Agreements, the original RTA portal and LASPO Act amongst others, it’s clearly a 1 in 5+ years shift in the tectonic plates of motor insurance.
In 2015 the then Chancellor referred to achieving a reduction of "￡40 to ￡50 per insurance policy" by tackling whiplash fraud. The MoJ's January 2019 Impact Assessment stated that in the financial year 2016/17 520,000 soft tissue injury RTA accidents received a financial settlement.
Delayed many times over, we’ve seen almost as many Lord Chancellors as Nottingham Forest managers during its gestation. The most recent announcement moving implementation back by one month to May was in part optical, since in working days it’s likely to mean the best part of two months, but fundamentally it meant that this time go-live is for real. The impacts will wash across pricing, regulatory oversight and public perception as well as within the claims market.
Most folks agree that reform is necessary. Will it have consequences as intended? What grey areas will there be? Who will be best placed to operate effectively?
In a world that’s mid-CV19 and post-Brexit this moment shouldn’t be underestimated. I imagine that there are plenty of us poised for a long read, with a mug of Kenya's strongest at the ready...
Experienced Director and Business Developer. Andrew is an expert in Connected Car/Telematics solutions in the insurance vertical.
4 年A nice piece of thought leadership here from Peter. I too suspect the reforms will pass almost un-noticed in the wider world with to be fair good reason given the current CV19 situation. But reforms will change many things in the world of motor insurance. My hope is that the great service provided to customers during FNOL isn't lost as a result of tumbling incomes. MLEI polices and what they actually cover are probably more important than ever to ensure customers do get the care they need if injured and that customers are assisted in processing genuine injury claims and accessing hire vehicles to sustain mobility. And yes strong coffee will be require when reading the long delayed and eagerly awaited rules! They surely can't delay this again.
Director/Owner at Carpenters Group. Accidental Influencer!
4 年I’m sitting here waiting Peter! Be very interesting to see what happens. Not ideal timing for huge change with pandemic, Brexit & home working either. Your comment on football managers really tickled me! ??
NFUM is the UK’s leading insurer in customer satisfaction, providing local personal service, through a focused strategy and change delivery framework centred on the customer outcomes.
4 年Well said Peter.
Sales and Marketing Director at Corporé
4 年Couldn’t agree more Peter! Bated breath and notepads at the ready!
Managing Director of SX3 Claims Limited
4 年Once the final rules are published, we will be actively seeking views from across the claims market on how organisations will approach their handling of low value PI claims. Peter Smith It would be good to get your input when the time comes, if that's OK?