MPs launch inquiry into motor premiums

MPs have launched a snap investigation into recent hikes in motor premiums.

The House of Commons transport select committee has announced that it is carrying out a short inquiry and will grill industry representatives, including ABI general insurance director Nick Starling, on the topic at Westminster next Tuesday.

The inquiry will give particular emphasis to the impact of price increases on young people. It will also investigate the effect that the prevalence of road accidents, fraud, legal costs and uninsured driving have on premiums.

Biba head of corporate affairs Graeme Trudgill said that the inquiry provided the industry with an opportunity to explain to policy makers how cost pressures are driving the price hikes. He said: “You can’t argue against the numbers – it just doesn’t add up.”

Deloitte insurance partner Ian Clark said he hoped the inquiry would help to push forward the implementation of the Jackson review of claims litigation costs.