EWJ June 2024 web - Journal - Page 20
Allianz added that whilst it was committed to passing
on any savings which have resulted from the implementation of the reform programme, it has been “very
difficult” to gauge what the actual savings were and
therefore to determine how much to pass on to
policyholders.
Zurich insurance company noted that its data showed
a 30% reduction in the volume of minor personal
injury claims received since the introduction of the reform programme but urged that “it is important to
consider such facts in context to significant wider factors that have occurred in the UK during this period
and continue to influence driver behaviour, car usage
and accident rates”. They added:
It must be recognised however that the rate of
inflationary increases seen in motor damage have
eroded overall benefits. It is fair to say that the reforms
have helped create an offset which means premiums
aren’t as high as they would have been without the
reforms.
In its submission DAC Beachcroft Claims Ltd told us
that current premium levels could not be compared to
those pre-reform without understanding the “complex set of moving factors” in the market. The firm
said external factors such as inflation, supply chain issues caused by the pandemic and exacerbated by the
war in Ukraine, and the value of used cars had placed
pressure on insurance premiums to rise.
The ABI agreed that many factors impact on the cost
of motor insurance premiums. They acknowledged
that motor premiums were rising but stated that in
their assessment, the reform programme had meant
lower premiums than would have otherwise been the
case. The Association provided examples of external
factors which had impacted on insurance premiums
and were outside of insurers’ direct control, including
rising inflation, the increasing cost of care in relation
to high value and catastrophic claims, the pandemic
and Russia’s invasion of Ukraine.
Allianz concurred that the reform programme had
reduced the frequency of minor PI claims but added
that the factors behind the reduction were varied.
They told us:
Whilst the Department for Work and Pensions figures
show a 41% reduction in personal injury claims our
own data (supported by industry experience) shows
that 32% is as a result of a reduction in third party
claims overall, driven by the Covid-19 pandemic when
fewer people were driving and the subsequent
changed driving behaviours. Overall, our own data
for Personal Lines demonstrates that the reforms have
resulted in a 12.6% reduction in the number of
whiplash claims.
In its evidence, the MoJ urged caution against
attempting to form conclusions about the success of
the reform programme at this stage and against
Mr Dawson is a Consultant Urologist with over 26 years’ experience.
He has formal training in personal injury and medical negligence reporting
and completed the Bond Solon Expert Witness Course in 2006. In 2008
he completed a Diploma in Law at the College of Law in Birmingham.
Mr Dawson has over 19 years of medico legal report writing and expert
witness work and has completed over 1670 reports, He has completed
numerous Fitness to Practise reports for the General Medical Council.
He is the author of the ABC of Urology, now in its 3rd edition, and also co-edited the Evidence
for Urology which won first prize in the urology section of the BMA Medical Book Competition
in 2005.
Mr Dawson is happy to accept instructions for personal injury, clinical negligence and condition
and prognosis reports.
M: 07711 584939
E: expertwitness@chrisdawson.org.uk
EXPERT WITNESS JOURNAL
18
JUNE 2024