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Personal Injury: Compensation

Question for Ministry of Justice

UIN HL7584, tabled on 8 May 2018

To ask Her Majesty's Government whether the response of the motor insurance market to the £1.3 billion they will save annually as estimated in the Impact Assessment to the Civil Liability Bill will be monitored; if so, how and by which independent body.

Answered on

22 May 2018

The Government welcomes the commitment of 84% of UK motor insurance providers to pass on to consumers savings arising from Government measures in the Civil Liability Bill and the wider whiplash reform programme.

Motor insurance is intensely competitive on price and we expect that insurance companies will have little choice but to pass on savings, or risk being priced out of the market. Insurers have pointed to how they passed on to customers the benefits of previous Government action to cut the cost of civil litigation, without the need for regulation. The Government will continue to closely monitor the industry’s reaction to these reforms and will regularly engage with them on how they are meeting their commitment. If the industry as a whole sought to avoid passing on savings the Financial Conduct Authority and the Competition and Markets Authority would investigate.