The Association of British Insurers has published a 10-step roadmap intended to tackle rising insurance costs for drivers.
This comes after the EY reported that for every £1 paid in premiums last year, insurers incurred £1.14 in claims and expenses.
As part of the 10-step roadmap, the ABI will focus on greater transparency around insurance costs to support better customer decision-making. It will also try to mitigate the rising costs of vehicle thefts by working with the police to aid in the recovery of stolen vehicles.
The plan also calls for greater action around insurance fraud, improving road safety and infrastructure, and providing additional support for new drivers.
Further, the ABI will seek to reduce the impact of the Personal Injury Discount Rate (PIDR), while continuing with reforms to reform whiplash claims, advocating safety-focused vehicle technology, and continue to lobby for lower Insurance Premium Tax (IPT).
In addition, it aims to support the vehicle repair sector by working with government, manufacturers and repairers to create more volume and flexibility in the sector.
Mervyn Skeet, Director of General Insurance Policy said, “We know that insurance costs are putting strain on household finances, so we’ve been working hard to find solutions. Some of these actions we can do quickly, others will require time or assistance from the regulator or government.
“Regardless, we will continue to do what we can under our new strategy to help consumers access the products that are integral to financial wellbeing and play a key role in the nation’s financial resilience.”
