With no coach, no robes, no Duke of Edinburgh – and no majority Government – this was a very different Queen’s Speech. Although Brexit and national security were among its critical themes in a Parliamentary session that has been extended to last for two years rather than one, three Bills directly relevant to the general insurance sector were announced.
A good deal of this recently-published Government Bill deals with prison reform and prisoner welfare and these issues took up much of the debate on Second Reading in the Commons yesterday, which ran from late afternoon until nearly 10pm. In addition, part 5 of the Bill seeks to implement the Government’s reforms to whiplash claims, which were also discussed at some length.
This short post covers none of those topics but instead suggests that perhaps the two most important interventions yesterday, in terms of financial impact on the claims sector, came relatively early in the debate and then right at its end. Both were quite brief and taken together they clearly signpost reform to the process by which the discount rate for future losses in personal injury claims is set.
On the same day this week that Chancellor Philip Hammond said the government would “progress urgently” to consult about the personal injury discount rate, the Petitions Committee, working jointly with the Transport Committee, heard evidence about the cost of car insurance for young drivers. The topic will be debated in Parliament after a petition calling for a £1,200 cap on the cost of car insurance for young drivers secured more than 180,000 signatures. The Parliamentary debate is scheduled for 20 March and it may be mere coincidence that this is the same date on which the statutory instrument bringing in the new negative discount rate is scheduled to take effect.