A new investigation into personal injury claims stemming from car accidents being conducted by the Office of Fair Trading could lead to an opportunity to institute reforms to the legal system, the Association of British Insurers recently said.
The ABI stated that it welcomed the news of the investigation into credit hire and motor repairs arrangements, as both insurers and the OFT want consumers to gain access to the best possible deals. The insurance industry body was encouraged in particular by the OFT’s recognition that motor insurers face a large scale problem when it comes to car accident claims, as the ABI has been making the argument that reforms have been needed for quite some time, the statement also read.
The ABI statement continued, claiming that the industry body has been calling for the system’s inefficiencies and unnecessary costs to be addressed for years. These issues, ranging from credit repair to credit hire to personal injury compensation, have finally been recognised by the OFT, said the ABI.
The industry as a whole is completely committed to the improvement of the market in order for consumer benefit, the statement also said, adding that ABI members have already been taking proactive steps to remove costs that are driving up premium prices unnecessarily through the development of market practices. The ABI remarked it was looking forward to a continuation of its engagement with the OFT while the government watchdog continues to conduct their study of the insurance market, with the hopes that it will result in lower premium prices for its customers and industry improvements.