Aviva is the latest insurance firm to express optimism following the Queen’s Speech announcement of new legislation against fraudulent whiplash claims.
Andy Briggs, chief executive of Aviva UK, said the prospect of lower cost insurance, fewer nuisance calls, and the creation of a Single Financial Guidance Body to help customers make financial decisions is very welcome.
“Aviva has long-championed meaningful personal injury reform and tough, effective regulation that recognises the challenges associated with aggressive claims management companies,” he was quoted as saying in a report by Norwich Evening News.
Briggs cited what he called a broken system which he believes has long rewarded fraudsters, claims management companies, and injury lawyers at the expense of honest motorists.
He said Aviva continues to pledge that it will pass on 100% of the savings of these measures to customers, and hopes the government will do everything it can to keep the cost of insurance down.
The announced Civil Liability Bill aims to pay full and fair compensation only to genuinely injured people, prohibiting offers to settle whiplash claims without medical evidence. Compensation payments will also be pinned to a fixed tariff system.
Motorists are expected to save an average of £35-£40 per motor insurance policy, helping mitigate some of the recent increases driven by last February’s adjustment in the Ogden rate.
Other insurers who have welcomed the news include Ageas UK, whose chief executive Andy Watson praised the Bill for producing a legislative way to address the “disastrous decision” to reduce the discount rate to -0.75%.
Queen’s speech delivered: insurance industry reacts
Good news for insurers - lawyers expect Ogden rate adjustment