Transport Secretary, , and Economic Secretary to the
Treasury, , will bring together industry
groups and consumer champions such as the Association of British
Insurers, Citizens Advice, Which? and Compare the Market, as well
as insurance regulators, to tackle spiralling costs of car
insurance today (16 October 2024).
It comes as motor insurance premiums have grown by an average of
21% since June 2022, according to Financial Conduct Authority
(FCA) analysis –
far higher than in comparable economies such as Germany, France,
Spain and Italy – with the government reaffirming its manifesto
commitment to act on increasing consumer costs, which stunt the
economy and prevent growth.
A new cross-government motor insurance taskforce, supported by
industry experts, will also be launched by the Transport
Secretary and Economic Secretary to the Treasury today to help
drive down the high costs of car insurance.
The taskforce will identify the factors behind rapidly rising
premiums and will agree solutions to keep costs under control.
Factors driving up the cost of insurance include inflation,
rising car thefts and the country's pothole-ridden roads, which
the government has pledged to
fix with its pledge of filling up to 1 million more potholes
every year.
This taskforce is part of the government's manifesto commitment
to act on the high cost of insurance for drivers – particularly
those who are disproportionately affected by high prices such as
young and older people and those from ethnic minority backgrounds
or on lower incomes.
Transport Secretary, , said:
Car insurance is an essential, not a luxury. It is vital to
accessing economic opportunities and this government is committed
to getting costs under control. That's why we're taking direct
action to bring insurance companies and regulators round the
table to discuss how we can crack down on spiralling costs.
The rising cost of cover affects all drivers but some groups have
been hit harder than others. No matter your background or
circumstance, this government is determined to ensure drivers get
a fair deal.
Our new expert taskforce is a major step forward in delivering a
fair deal for drivers. It will give this issue the attention it
deserves – rooting out the factors driving up costs for industry
and ensuring drivers are able to hit the road.
The taskforce will bring together expertise from regulators,
motoring groups, insurers and consumer groups to find solutions
for the high cost of insurance, addressing contributing factors
to high costs generally and those that may be disproportionate
depending on age or ethnicity.
The taskforce will help support the government's missions to grow
the economy and break down the barriers to opportunity, by acting
on the cost pressures facing industry and supporting drivers to
hit the road.
The expert group will identify the causes of rising costs, assess
whether consumers are receiving fair value for money and look at
the impact on the groups hit the hardest, using advice from the
regulators the FCA and Competition and
Markets Authority (CMA).
