Insurance Summit Ends in Accord

Motorhome owners could be looking forward to lower motorhome insurance premiums after the insurance summit meeting held between Government Ministers and insurance experts at Chequers yesterday.

Prime Minister David Cameron famously called the UK “The whiplash capital of Europe” before the meeting and sure enough this was one of the biggest factors discussed at the table. At the end of the day the summit managed to agree on a plan to tackle the most urgent factors causing the massive escalation in insurance premiums across the whole gamut of insurance protection.

The Government have promised to tackle the legal industry who are blamed for much of the costs incurred in insurance settlements but are also adamant that insurers should not be using referral systems either. They promise to reform the ‘no win, no fee’ system and ban referral fees; they will also extend the road traffic accident claims process to cover employers liability and public liability. For their part insurers have agreed to pass on any savings directly to customers in the form of lower premiums.

All parties present agreed that the level of claims for whiplash injuries, currently 1,500 per week, was totally unacceptable and measures had to be taken to reduce them. It was agreed to investigate all options over the coming months including a requirement of improved medical evidence, a specific speed limit below which claims cannot be entered and a reduction in fees that lawyers can earn from pursuing whiplash claims through the small claims courts.

All parties also agreed that the number of accidents involving young drivers and the cost of their insurance must be tackled, with the new smart box technology favoured by many at the meeting.

Director General of the Association of British Insurers, Otto Thoresen, attended the meeting and said: “The cost of motor insurance reflects our society where it is all too easy to make spurious and exaggerated personal injury claims, where excessive legal costs can outstrip compensation awards and that tolerates the high levels of deaths and serious injuries involving young drivers and their passengers. Urgent action is needed to tackle the surge in whiplash claims which now cost insurers £2 billion a year and push up premiums for all motorists. Tackling these issues will bring down motor premiums.”

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