The Motor Accident Solicitors Society (MASS) is challenging the insurance industry to commit to passing all of the savings they make as a result of the recent law reforms onto their customers via reduced insurance premiums.
MASS estimates that the insurance industry will save as much as £1.4bn as a result of the recent changes to the personal injury claims system and MASS wants to see a public commitment from the insurance industry that the savings will be passed on to policyholders rather than pocketed by their shareholders.
Legal costs have been falling for ten years and are set to fall even further – possibly by as much as 60%.
According to figures published by the AA, the average quoted premium for annual comprehensive car insurance has fallen by 1.4% since the beginning of the year, down by 4.1% down on this time last year. However, policies covering Third Party, Fire & Theft have increased by 2% since the beginning of the year.
Whilst comprehensive car insurance premiums have dropped slightly, this must be put into context and viewed against the massive hikes in previous years (up to 38%). What remains clear is that insurers continue to enjoy very healthy profits.
Tom Ranson of Ashton KCJ Injury Services says: “Insurance costs have risen disproportionately in recent years. It is good to see average quotes falling a little this year but certainly not to the extent we all hoped for. It will be very interesting to see whether the insurers will meet the challenge and actually pass on real savings to their customers rather than continuing to choose to line the pockets of their shareholders.”