Has the Chancellor revived the whiplash reform programme?

Yesterday’s budget marks just over two years since former Chancellor George Osborne announced, in his 2015 Autumn Statement, significant reforms to damages for whiplash claims and five-fold increase in the small claims limit for road traffic injury cases. Material released by the Treasury yesterday appears to indicate that Government expects to implement these reforms before April 2019.

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Three very different current Bills affecting general insurance are worth following, with each moving at its own pace

The Financial Guidance and Claims Bill is well-advanced in the Lords – it gets a third reading today – and is due to get to the Commons early next year. It will move the regulation of the claims management sector from the Ministry of Justice to the Financial Conduct Authority; a measure likely to take effect well into 2018 or perhaps even later. It is also worth noting that the Government has committed to amending the Bill – when it gets to the Commons – in order to ban cold-calling for claims leads. While the overall approach is both necessary and sensible, getting there has taken far too long given that this regulatory tightening was first suggested in the March 2016 review of the claims management sector but won’t bite until at least three years after that. [Contrast that with the far quicker approach to tackling abuses in holiday sickness cases, where we expect fixed costs controls to kick in from April 2018.]

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Discount rate – two bills announced and rate change expected in medium term

This morning the Lord Chancellor issued a regulatory news story (RNS) to the Stock Exchange which confirms that new draft legislation will be brought forward to re-set the current personal injury discount rate of minus 0.75%.

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