Today the Economic Secretary to the Treasury and I will co-chair the first meeting of a new cross-Government taskforce on motor insurance.
Motor insurance is an essential, not a luxury. It is vital to accessing economic opportunities, and this Government are committed to ensuring drivers are treated fairly.
This Government are committed to tackling increases in motor insurance premiums—which have risen at far higher rates in the UK than in other comparable economies. While motor insurance is a complex market, the Government want to ensure that it works well for the drivers it serves.
The taskforce, which will be attended by Ministers from several Departments and by the Financial Conduct Authority (FCA) and Competition and Markets Authority (CMA), has a strategic remit to set the direction for Government policy in this area. It will identify the drivers behind rising premiums and will agree short-term and long-term actions for Departments that can contribute to stabilising or reducing premiums, while maintaining appropriate levels of cover.
The taskforce will evaluate the impact of increased insurance costs on consumers and the insurance industry, including how this impacts different demographics, geographies and communities.
While all drivers have struggled with rising costs, it is important to recognise the particular pressures on specific groups that face barriers to accessing fair and affordable motor insurance. This includes ethnic minorities, those on lower incomes, and elderly and young drivers. This taskforce will therefore have an additional focus on those groups.
The taskforce’s first meeting will also be attended by representatives from the motor and insurance industries, consumer champions and other relevant groups.
Improving access to appropriate and affordable insurance is key to supporting people’s financial resilience and wellbeing, and making sure they can benefit fully from this Government’s wider economic agenda of inclusive growth and breaking down the barriers to opportunities. I look forward to updating the House on the taskforce’s progress on these matters in the coming months.
[HCWS143]