Commenting on the Association of British Insurers’ (ABI) latest figures for motor claims, published on 12 March 2021, Matthew Maxwell Scott, executive director of the Association of Consumer Support Organisations (ACSO), said:
“The ABI’s commentary on the impact of the drop in motor claims on car insurance premiums is troubling.
“The ABI’s own figures show that settled motor claims fell by nearly 20 per cent last year, handing insurers billions in savings. Yet average premiums were down a miserly 1 per cent.
“The admission that ‘cost pressures remain’ implies that policyholders may not see the further £35 in savings that ministers promised would be the dividend from the whiplash reforms for honest motorists.
“In changing the law, government has removed important civil justice rights from consumers. Insurers must fulfil their end of the bargain by passing any savings on from reduced claims volumes. If Admiral was able to hand back £110m to its customers during the pandemic, it begs the question: why did no other insurer follow suit?
“The ABI is happy to explain why premiums go up and has spent the last several years justifying the whiplash reforms by promising they will help cut premiums.
“Now the reforms are on the statute books, and claims have fallen sharply for the past three years, we need a straight answer. This time, will Britain’s hard-pressed motorists receive the savings they are due?”