Chartered Insurance Institute statement regarding today’s Queen’s Speech
In light of today’s Queen’s Speech, the Chartered Insurance Institute welcomes the Government’s commitment to a civil liability bill, which will tighten rules on whiplash claims.
It is essential that people who suffer from personal injuries get the help and compensation that they need, but it is also important to ensure that motor and liability insurance is affordable.
With the cost of living rising faster than wages, it is essential that the Government acts to prevent avoidable increases in the cost of car insurance.
The announced measures will deliver savings to motorists and represent a sensible approach to whiplash reform.
We also welcome the decision to put the FCA in charge of regulating claims management companies. The FCA has the resources needed to enforce the existing regulation.
While there are many instances where claims management companies provide valuable support to consumers entitled to compensation, there is a need for tighter enforcement of regulations.
Better enforcement will bring two significant benefits for customers.
First, they will be less likely to be pestered by claims management companies in unethical ways.
Second, they won’t have to pay premiums that are inflated by unscrupulous firms coaching people into making frivolous or fraudulent claims.
Cracking down on these firms using a proven regulator is welcome news and we look forward to working with the FCA and other important stakeholders to make a success of the new regime.
