Motor Insurance Taskforce published its final report

The Motor Insurance Taskforce (the Taskforce), set up in October 2024, published its final report on 10 December. 

The Taskforce, made up of multiple government departments and regulators, was set up with the aim to agree actions that will stabilise and reduce the cost of motor insurance premiums paid by consumers. 

The remit of the Taskforce was wide ranging, and its analysis has covered all areas that may impact premiums including the insurance market, the claims process, road safety, uninsured driving, fraud, crime and the vehicle repair sector. 

Insurance Market

The report paints a picture of falling premiums but rising claims costs. In term of the insurance market, the Taskforce has avoided suggesting any direct action to affect pricing instead pointing to the work of the Financial Conduct Authority (FCA) in respect of general pricing practices and the continuing work on premium finance (the conclusions of which will be published in 2026). The Taskforce also points to the work of the FCA in data innovation, particularly in respect of the Smart Data Accelerator and its potential use in the insurance context. The FCA will publish its Open Finance Roadmap in 2026. 

In respect of claims management companies, the Taskforce, again, acknowledges the continuing work of the FCA in regulating the same and keeping costs down. The government will keep current measures and the market under review. 

Actions

• The FCA has published further analysis on the cost of motor insurance for particular customer groups.
• The FCA will publish its conclusions on premium finance in 2026.
• The government will continue to work closely with the FCA to support possible insurance use 
  cases for smart data, including in the FCA’s Smart Data Accelerator.

The Claims Process

The Taskforce notes that bodily injury claims rose by 7% in the period 2019-2023 but are less of a significant factor in the cost of claims than may once have been the case. The Taskforce appears to have deferred further action on the issue of bodily claims to the Ministry of Justice who are currently engaged in a consultation in respect of the Whiplash Reform Programme. 

Credit hire is identified as a more troubling factor in the increase in premiums. Whilst increased repair times have led to a larger credit hire bill, lack of effective claims management by some insurers, referral fees and the lack of incentives to take up a courtesy vehicle are having an adverse effect on premiums but also increasing the value of individual claims and eventually having an adverse impact on court capacity. 

Actions 

• The FCA will work with the ABI and firms to consider how claims can be better managed to ensure greater efficiency and cost control, without adversely affecting customer outcomes. 
• As recommended in the FCA’s report, the ABI and firms are working to develop a good practice code to reduce referrals to third parties and capture the management of more claims.
• The government welcomes the work by the Credit Hire Organisation (CHO) and the Association of British Insurers (ABI) to revise the GTA to ensure credit hire costs are fair for consumers.

Road Safety 

Although it is acknowledged the number of motor claims fell slightly between 2019 and 2023, the costs of vehicle repair remain significant and have knock-on effects on credit hire claims. The government’s role in road safety is acknowledged as a factor for the Taskforce to consider both in terms of strategy and repairing potholes. 

Actions

• The Department for Transport (DfT) intends to publish a Road Safety Strategy.
• The DfT will continue to invest in highways maintenance.

Uninsured driving, fraud and crime

Fraud, in all its various forms, has been identified as a significant factor in motor premium pricing and there has been a significant increase in recent years. The Home Office in 2025 launched the Insurance Fraud Charter with insurers to combat fraud and includes a commitment to greater data sharing. The Taskforce also identifies the work of the various law enforcement agencies and the ABI in combating fraud. An upcoming government Fraud Strategy will also strengthen counter-fraud action. 

In terms of theft, the Crime and Policing Bill will enhance police powers and make it easier to pursue those stealing cars. There will also be more inter-agency cooperation and extra funds allocated to prevent stolen vehicles and parts being shipped abroad. 

The costs for dealing with claims caused by uninsured drivers has increased sharply since 2019. The Taskforce notes the efforts of the MIB to reduce the number of uninsured drivers. Further, the government is considering increasing the penalties for uninsured driving. 

Actions

• The FCA continues to call for more action to be taken by social media companies to prevent fraudulent content from appearing on their platforms. Where the FCA identifies unlawful content, including ghost broking, ad-spoofing and material posted by finfluencers, it will seek to get the content removed and work with other partner agencies, including law enforcement, working to combat these activities. 
• The Home Office will continue its efforts to tackle vehicle theft, introducing new offences concerning electronic devices that are used in vehicle theft through the Crime and Policing Bill.
• The DfT will consider the penalties associated with uninsured driving.
• The DfT will continue to engage with counterparts in Northern Ireland to support their exploration of the potential benefits and feasibility of a CIE scheme.
• The ABI will continue work with the National Vehicle Crime Intelligence Service at the port of Dover to enable disruption and enforcement activity against criminals who intend to export stolen vehicles from the port.

Vehicle Repair 

A skills shortage, inflation, energy prices and supply chain challenges are all serving to drive up vehicle repair costs. The insurance industry is encouraged by the Taskforce to collaborate with manufacturers on the vehicle risk rating system to provide better insurability assessments. This, the Taskforce states, will help insurers offer more individualised pricing for consumers and allow manufacturers to consider repairability and insurability at the design stage. 

The government is also giving a cash boost to support research and development in the latest vehicle technologies. This has a particular emphasis on electric vehicles and over time is expected to enhance and reduce the costs of repair and insurance. 

The government, as part of its industrial strategy, is introducing apprenticeships for targeted sectors. Technical Excellence Colleges will also be introduced to address the skills shortfall. 

Measures, reflecting changes in EU law, are also being considered in respect of EV battery health to reduce the number of EV write offs, make EVs easier to repair and the purchase of second-hand EVs more attractive. 

Actions

• The Taskforce encourages the motor insurance industry to work closely with vehicle 
  manufacturers to review the vehicle risk rating system.
• The Department for Business and Trade will maintain positive relationships with industry to ensure a steady exchange of information on supply chain issues and concerns.
• The Department for Business and Trade, through the long-term investment announced in the Industrial Strategy, will drive innovation, scale up and commercialisation in new vehicle technologies, driving efficiencies and reducing costs.
• The Department for Education and the Department for Work and Pensions will improve skills and training for key professions, aligned with the Industrial Strategy.
• The DfT plans to consult on the introduction of new battery health 
  measures for electric vehicles

Conclusion

The Taskforce recommendations highlight a range of government, industry and regulatory actions, many that are already ongoing, that may have a positive effect on premium levels for consumers. There certainly is no silver bullet for achieving the Taskforce’s main objective in the report, rather a multi-faceted, gradual approach. 

That said, the report underlines the work that insurers will now have to do in conjunction with regulators, government and industry to fulfil the Taskforce’s recommendations.