On 10 December, the Government published its long-anticipated Motor Insurance Taskforce report. Originally launched under Louise Haigh, the review lost momentum following her departure and, as inflation stabilised, the political drive behind the work appeared to wane. Once in office, Labour appeared to begin to appreciate the structural pressures on the motor market – rising repair and parts costs, lack of credit hire regulation, and continuing fraud – dampening expectations of sweeping reform.
Although described in the foreword as a “roadmap to real change”, the report offers very little that is genuinely new. Most actions reflect existing workstreams that would have occurred regardless. The only substantive recommendation is the ABI’s development of a good practice code to reduce third-party referrals.
Critically, nothing in the report is likely to deliver meaningful reductions in motor premiums, and the Taskforce fails to address one of the clearest and most widely acknowledged cost drivers: credit hire – with the anticipated recommendation of a credit hire pre-action protocol notably absent.
The report highlights a series of commitments that largely continue current activity:
It also confirms the FCA’s premium finance conclusions will now not be published until 2026.
Taken together, these commitments largely reflect ‘business as usual’: working closely, continuing to work, considering, and intending. Apart from the proposed ABI good practice code, it is difficult to identify any recommendation that would not have happened in the normal course of regulatory and industry activity.
Pricing and Young Drivers
The report acknowledges market competitiveness, rising costs, and the impact of the personal injury discount rate. While noting that young drivers face disproportionately high premiums, there is still no published Road Safety Strategy – and no indication of measures that might improve outcomes for this high-risk group. The Taskforce also dismisses social-tariff-style interventions for low-income households.
Whiplash Reforms
The report references the ongoing post-implementation review of the whiplash reforms and the open consultation but does not expand further and leaves question of whether the small claims track limit should be revised to the work of the CLA post-implementation report.
Uninsured Driving
The report states that the Government will consider additional penalties for uninsured driving. No specific measures or timelines are proposed.
The Taskforce recognises rising credit hire costs, weak incentives to control charges, and ineffective claims management processes identified by the FCA. Referral fees continue to fuel unnecessary third-party involvement.
Despite this, the report offers only general support for better claims management and does not recommend a credit hire pre-action protocol, nor does it acknowledge the strong cross-industry support for one. Given the MoJ’s indication that such a protocol requires only industry agreement and sign-off from the Master of the Rolls, the lack of endorsement is a major missed opportunity, but does not mean that work on a protocol cannot progress.
The Taskforce report ultimately says a lot about very little. Apart from the ABI’s proposed good practice code, it contains no recommendations likely to materially affect claims costs or premiums. Its failure to support a credit hire PAP or recommend an increase to the small claims track limit is particularly disappointing and represents a fundamental gap in addressing motor claims inflation.
We will continue to monitor developments, particularly around credit hire and the FCA’s forthcoming work.
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