As Labour wins general election, what has it said about insurance?

Labour has managed to secure a landslide win at the general election.

While 326 seats in the House of Commons are needed for a majority, the party was able to secure more than 400.

It means Sir Keir Starmer will become Labour’s first prime minister in 14 years.

“We did it, you campaigned for it, you fought for it, you voted for it and now it has arrived,” Sir Keir told a crowd of supporters.

“Change begins now.”

His win puts an end to 14 years of Conservative rule – outgoing prime minister Rishi Sunak conceded defeat just before Labour reached the 326 mark in the early hours of the morning.

“The Labour party has won this general election and I have called Sir Keir Starmer to congratulate him on his victory,” Sunak said at the election count.

Insurance

Ahead of Labour’s win, the party pledged to crack down on the cost of car insurance.

Rises in prices come amid an increase in costs to insurers, with EY estimating that for every £1 collected in premiums, the industry paid out £1.14 in claims and expenses.

However, shadow transport secretary Louise Haigh said the FCA and Competition and Markets Authority needed to investigate the sector.

“Car insurance is a legal requirement and an essential – not a luxury. Labour won’t sit back and watch while drivers are punished by the out of control cost of cover,” she told The Mirror.

“We will urgently call in the regulators to crack down on any unfair practices and to come clean on the causes of soaring costs for consumers.”

To help reduce claims, Labour has also pledged to fix up to 1m more potholes every year.

Haigh said drivers had to pay out £500m last year in repairs caused by potholes.

“We will make our roads safer for all who use them and remove the barriers which bog down our planning system, speeding up infrastructure improvements and cutting costs for taxpayers,” she added.

Streamlining 

Meanwhile, Tulip Siddiq, Labour’s candidate for Hampstead and Highgate, said in February 2024 that the party was committed to “streamlining the regulatory burden for the insurance sector”.

Speaking at the ABI Conference in London, Siddiq said that ”with the right support, [the UK insurance industry] can have an even brighter future”. 

However, she noted: ”This calls not just for a change in government, but a change in mindsets and a government prepared to work in partnership with business to remove the barriers to economic success.

”[Labour] are committed to streamlining the regulatory burden on the insurance sector that can obstruct competitiveness and growth.” 

What are your thoughts about Labour’s win? Email your views to james.cowen@insurancetimes.co.uk.