Chancellor's reforms to compensation process 'a significant breakthrough' -ABI

Commenting on the announcement in today’s Autumn Statement of further reforms to the compensation process, Huw Evans, Director General, Association of British Insurers, said:

“This is a significant breakthrough in tackling the compensation culture and is  good news for motorists. Insurers have long called for meaningful reform in reducing costs in the compensation system, including increasing the Small Claims Track Limit. Previous Government reforms have already led to insurers passing on over £1 billion in savings to motorists through lower premiums, and  in a highly competitive motor insurance market, insurers will continue to pass on savings to customers”.

Hew Evans also reacted to the announcement on flood defence spending, saying, “Protecting homes and businesses from the growing threat of flooding is vital. Further confirmation of the £2.3bn investment in flood defences is good news and we are also encouraged to hear flood defence maintenance spending is being protected, although we will be checking the details closely.”

He went on to say that Osborne's decision to delay escalation of auto-enrolment contriutions for six months was '"disappointing", remarking that, "with an aging population and increasing life expectancy, auto-enrolment can only succeed if people and employers start putting more money into their pension pots, to fund them through their retirement.”