With UK insurance companies now accounting for the lion’s share of the Irish motor insurance market, any new initiative to curb insurer power by the UK government will, most likely, have a knock on effect here. Over recent months, the UK government has been paying more attention to motor insurance costs and recently Prime Minister, David Cameron, met with insurance industry representatives and consumer and business groups, to discuss rising premiums.

The main trust of the new initiative is an attempt by the UK government to tackle the compensation culture, reduce legal costs and cut health and safety red tape. For their part insurers have committed to pass any savings they can make on to consumers. Measures agreed at the meeting include:
- A commitment to reduce legal fees in relation to small value personal injury claims.
- Insurer commitment to adjust premiums to reflect any reductions in legal costs created through the ban on referral fees and other measures.
- Government and insurance industry committed to work together to identify effective ways to reduce the number and cost of whiplash claims.

The government and insurance industry agreed to work together to look at what more can be done regarding young drivers’ risk and safety. This is likely to include the wider use of telematics or ‘smartbox’ technology.

The effect of these initiatives will no doubt filter through to the Irish market, although whether premiums here are affected remains to be seen.