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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Further clues about the discount rate?

Just after the election result in a blog dated 9 June I referred to “a much-changed form of political calculus” because of the hung Parliament. A subsequent piece suggested that the Queen’s Speech – passed in the Commons yesterday, 29 June – might offer a clue about legislation on the personal injuries discount rate. Some recent Government developments seem to connect both those comments and are explained in the body of this post.

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Does the dressed-down Queen’s Speech hide a reference to changing the discount rate?

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.

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