Keith Morris: 'There needs to be a new MOU between insurers'

The problem with motor is that insurers cannot sort this out independently. Because brokers control a significant portion of the non-fault claims in the market, unless they are willing to give up their credit hire and credit repair referral fees, it would be self-destructive of insurers to be first movers. This is why we must have regulatory (and probably, legislative) intervention as a last, but uniquely effective, resort.

The solution is that a comprehensively insured customer must seek a repair and replacement car from his own insurer. We should retain subrogation, but there needs to be a new memorandum of understanding between insurers and possibly an intra-insurer general terms of agreement with realistic hire rates and durations built in.

Unfortunately the decision in Copley v Lawn means that legislation is needed: that case fatally weakened the mitigation argument that otherwise may have tipped the balance.

Keith Morris is chairman of Sabre