The need to shine a light on murkier aspects of claims industry hasn’t gone away

13 Oct 2016

The insurance press was awash today with news that the whiplash reforms have been delayed by the Ministry of Justice.

The news comes almost a year after then Chancellor George Osborne promised in his Autumn Statement that the Government would consult on how to implement proposals to “crack down on the fraud and claims culture in motor insurance.”

Commenting on the news today, Alistair Kinley, director of policy and government affairs at BLM said: “Brexit will have reset many of the Government’s priorities: it’s naïve to think otherwise. Key Ministers behind the personal injury reforms proposed in last year’s Autumn Statement have moved on. While there is nothing official yet about those proposals proceeding or stalling, the need to shine a light on murkier aspects of the claims industry hasn’t gone away.

“There is significant activity on many fronts: recommendations from the Insurance Fraud Trask Force to tackle late notified claims have widespread support, as has tightening the regulation of claims companies by bringing them under FCA control; the Solicitors’ Regulation Authority is carrying out a thematic review of the personal injury sector and will report in early next year; and extending fixed legal costs is firmly back on the MoJ’s to do list.

“With these issues on the agenda for 2017 and with a review of the Jackson/LASPO reforms planned for 2018 it’s all too clear that improving the transparency and efficiency of the personal injury sector remains a very live issue.”

For further information, click here to access the ABI press release.

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Disclaimer: This document does not present a complete or comprehensive statement of the law, nor does it constitute legal advice. It is intended only to highlight issues that may be of interest to customers of BLM. Specialist legal advice should always be sought in any particular case.

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Alistair Kinley

Alistair Kinley

Director of Policy & Government Affairs,
London


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