The Commons Transport Committee’s report on the cost of motor insurance has missed the point, according to a trade group representing insurers.
Nick Starling, a director at the Association of British Insurers, said the report represents a missed opportunity, and insisted: “The committee has failed to recognise that the main cause of the recent increases in motor insurance premiums is ever-increasing personal injury claims and spiralling legal costs.”
He said MPs should instead have urged the Government to implement recommendations from another more favourable report which attacks a so-called compensation culture in the insurance industry. Unless this is done, according to Mr Starling, insurance companies will continue to raise their prices.
He claimed legal costs for insurers now add £40 a year to the average policy.
Mr Starling added that the industry is itself funding the Insurance Fraud Bureau in an attempt to reduce fraud.
Medico-Legal News Source: Claims Management Magazine
