Brown: Taskforce unbalanced from the outset
Claimant personal injury lawyers have heavily criticised the government after a freedom of information request showed no engagement with the sector by the motor insurance taskforce.
They argued that the taskforce’s final report – due this autumn, possibly published with next month’s Budget – would “lack credibility and legitimacy in listening only to insurers”.
The taskforce was set up a year ago to identify the factors behind rapidly rising premiums and agree solutions to keep costs under control.
Co-chaired by the Department for Transport and HM Treasury, it is made up of ministers and officials from various other government departments, plus the Financial Conduct Authority and Competition and Markets Authority.
It is supported by a stakeholder panel consisting of the Association of British Insurers), British Insurance Brokers Association, Motor Insurers Bureau, Society of Motor Manufacturers & Traders, Citizens Advice, Which? and Compare The Market.
The Motor Accident Solicitors Society (MASS) said it has written to ministers on several occasions, asking either to participate in the taskforce’s work or submit written or oral evidence.
“We are aware that other claimant representative organisations have also done so. We did not receive a reply to any of our letters,” it said.
MASS chair Sue Brown said: “Leaving claimant voices out of the process makes the taskforce unbalanced from the outset. It’s unacceptable that insurers have been given multiple seats at the table, while those representing the injured have none.”
“Which? and Citizens Advice are worthy consumer champions, but neither has the specialist expertise in personal injury law needed to scrutinise insurer arguments in this highly technical area. Even Citizens Advice routinely refers accident victims to MASS.”
The freedom of information request showed that the taskforce has met three times, most recently on 21 July, and the stakeholder panel shortly before then. The taskforce has also met with representatives from the Scottish and Welsh governments, and the Northern Ireland Executive.
However, the government withheld the taskforce’s terms of reference, saying they were exempt from disclosure under section 35(1)(a) of the Freedom of Information Act on the grounds that the information related to the formulation and development of ‘live’ government policy.
Ms Brown expressed concern that the process could see a repeat of the last round of whiplash reforms – begun with an announcement by then Chancellor George Osborne in his 2015 Autumn Statement and resulting in the Civil Liability Act 2018 – which “tilted the system heavily towards insurers, undermining the rights of accident victims”.
She went on: “Government scrutiny of motor insurance costs is right and necessary. But doing it without those who understand the experience of claimants following a motor accident risks producing policy again being written by the insurance industry, for the insurance industry.”
MASS is calling on the government to discuss the taskforce’s draft recommendations with claimant organisations before any final report is published.
A Department for Transport spokeswoman said: “We know the impact that rising motor insurance premiums have on hard-working families, which is why we established a taskforce last year to bring together government, regulators and the industry to identify the factors driving up costs.
“The taskforce has now concluded its work, and we will publish its final report in autumn.”
