Industry is already starting to plough ahead with changes to the personal injury claims system, without reforms by the MoJ
The ABI is again putting pressure on government to speedily deliver its reforms to the personal injury claims process, stating that the delay over the last six months has cost the equivalent of 55 million days.
The government has vowed the changes, which are expected to significantly cut the amount of times insurers take to handle personal injury claims, will be introduced by the end of this month.
But it seems that, for some in the industry, faith that the government will follow through with the changes - or at least the tough reforms introduced in its consultation paper - is dwindling as more time passes.
Lord Hunt recently told Insurance Times that the government’s initial consultation paper made proposals for a new system based around the principles of early claims notification, early admissions of liability, ending the duplication of work and creating fixed time periods and fixed recoverable costs.
Such a move, he argued, should have been universally embraced.
"Yet this consultation closed in July last year and we are still waiting," he said.
"Bridget Prentice, the minister, now says a response will be forthcoming by the end of March. Apparently the delay has been caused by the ‘numerous and diverse range’ of the responses received. That’s all very well, but I cannot imagine there were many surprises among the responses.”
Whether an attempt to be proactive or perhaps just out of impatience, insurers themselves are starting to take action in to their own hands in introducing changes to the controversial claims process.
Last week Allianz said it would be piloting changes to the way it handles personal injury claims in anticipation of the Ministry of Justice’s reforms.
The company said it would test a number of changes including fast tracking of motor and casualty claims to £25,000, and rapid liability investigations to meet the claims deadlines initially set up in the MoJ’s consultation paper last year.
The project will be run out of Allianz’s Woking claims handling centre and reviewed before a planned roll-out to other locations.
Allianz said it was frustrating that it is still unclear when the reforms will be implemented, but added that it was "important nonetheless that insurers are prepared".
There seems to be a general acknowledgement and willingness by insurers that change needs to happen with or without the government’s help.
Fortis has already held talks with claimant lawyers to come to compromised decisions on fixed fees and early admission of liability.
Nick Gunter, head of technical claims at Fortis, said that with the solicitors, particularly the larger firms, they are eager to adopt a less time-consuming and bureaucratic approach as well.
AXA has also held pilot projects that have achieved success in terms of establishing timetables and codes of practice on admission of liability.
On 25 March, the ABI will be refueling the campaign for personal injury claims reform at a parliamentary reception and have vowed they will not back down. The government’s failure to act would likely be quite an embarrassment given the tough stance it took on the matter in its consultation report.
That said, the insurance industry is no longer waiting around for the government in order to introduce the changes the personal injury claims process so badly needs.
