INSURANCE INSIDER

AT this time of year, it’s worth thinking about developments that will affect motorists and the insurance industry over the next 12 months.

Last year’s review of the discount rate – used to calculate compensation for injury claims – immediately saw premiums increase, so we’re pleased that the Government is looking to change how this is set.

Similarly, Insurance Premium Tax hit an all-time high of 12 per cent in 2017, meaning motorists pay nearly £60 on average in tax when taking out cover. We will continue to highlight this unfairness to the Chancellor.

Autonomous cars will also feature on the 2018 agenda, with legislation set to allow them on the roads by 2021. New types of insurance will be needed for such vehicles.

The impact of Brexit is crucial as well. Will the ‘Green Card’ make a return to enable driving in Europe? Will UK licences be valid there? Finally, new laws are set to increase regulation of claims management companies, which should reduce the number of calls harassing people to make fraudulent whiplash claims.

So 2018 is set to be an interesting year, for drivers and insurers alike.