Executive director says figures contradict claims that cost of insurance premiums are being driven by claims costs
Labour has been urged to follow through on its pre-election pledge to clamp down on the cost motor premiums as personal injury claims continue to drop.
Figures from the Compensation Recovery Unit (CRU), which were published today (15 July 2024) showed that 77,785 claims were made during Q2 2024, down from 89,361 during the same quarter last year.
And the latest figure was around 13,000 less than the previous quarter’s figure, which stood at 90,565.
Matthew Maxwell Scott, Association of Consumer Support Organisations (Acso), said the figures contradicted claims that the cost of insurance premiums were being driven by claims costs.
According to figures from Confused.com and WTW, published on 18 April 2024, car insurance premiums saw an annual rise of 43% (£284) between Q1 2023 and Q1 2024.
“Insurers have put the blame squarely on claims inflation, yet the number of claims has fallen by more than a quarter since the advent of the Civil Liability Act, which insurers lobbied hard for and continues to fall year-on-year,” Maxwell Scott said.
“No one can doubt that inflation has impacted the insurance market, including for claims, but we disagree with insurers asserting that it’s all the fault of injured people making a claim.”
Pledge
In turn, he has urged Labour to deliver on its pledge to clamp down on motor premiums.
Read: As Labour wins general election, what has it said about insurance?
Read: Industry responds to Labour’s promises on car insurance
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Transport secretary Louise Haigh MP said during the election campaign that regulators such as the FCA and Competition and Markets Authority needed to investigate the sector’s premiums.
She claimed that premiums were currently “out of control” and that there needed to be a clamp down on “any unfair practices”.
“As always, the big story is motor injury,” Maxwell Scott said.
“The number of people making a claim has fallen off a cliff, suggesting claiming has become a hassle and the compensation paid out too derisory for the effort involved.
“If we get to the point when the public ask ‘what is the point of motor insurance?’ it will be a disaster.
“This makes the government pledge for an inquiry into pricing timely and essential. Over to the transport secretary to deliver on her pre-election pledge.”
![James Cowen](https://d17mj6xr9uykrr.cloudfront.net/Pictures/112x112/P/Pictures%2Fweb%2Fc%2Fc%2Fq%2Fjamescowen300x300bw_283892.jpg)
His career began in 2019, when he joined a local north London newspaper after graduating from the University of Sheffield with a first-class honours degree in journalism.
He took up the position of deputy news editor at Insurance Times in March 2023, before being promoted to his current role in May 2024.View full Profile
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