Taskforce report declines major motor claims reforms despite pressure from insurers and regulators
A government taskforce established to examine rising motor insurance premiums has declined to recommend major reforms to the personal injury claims system, despite sustained pressure from insurers and the Financial Conduct Authority (FCA).
The cross-departmental taskforce, comprising representatives from the Department for Transport, the Ministry of Justice, the Treasury and the Department for Business, was set up just over a year ago to explore ways of stabilising and reducing motor insurance costs. Its work was supported by a range of stakeholders, including consumer groups and industry bodies representing insurers and the motor sector. Claimant lawyers were not involved.
The task force published its final report and action plan last week. The document revealed that both the FCA and insurance industry stakeholders had urged ministers to consider reducing damages for personal injuries other than whiplash. Proposals also included reviewing the small claims limit for road traffic accident claims to reflect inflation and further cutting the level of legal costs recoverable from insurers.
Embed from Getty Images
Concerns were additionally raised about the quality and reliability of medical reporting in motor injury claims.
However, none of these proposals were adopted in the taskforce’s final recommendations. Instead, the report calls for a more collaborative approach, suggesting that the FCA should work with the Association of British Insurers and law firms to explore how claims might be managed more efficiently, while ensuring that customer outcomes are not adversely affected.
The report leaves open the possibility of future reform in the lower-value claims market. In October, the Ministry of Justice launched a call for evidence as part of its post-implementation review of the Whiplash Reform Programme. That review will assess whether the reforms have met their objectives and evaluate the impact of measures such as the increased small claims limit and the introduction of the Official Injury Claim portal. The Ministry has said it will publish its findings and any recommendations once the review is complete.
The taskforce also noted that trends in motor insurance pricing have shifted since its work began. According to data from the Association of British Insurers, average annual motor premiums have fallen from £607 in the third quarter of 2024 to £551 in the third quarter of 2025, following sharp increases between 2022 and 2024.
One reform explicitly ruled out was the introduction of a non-fault compensation scheme, as used in some other jurisdictions. The taskforce concluded that the current tort-based system supports individual accountability and that moving away from it would represent a fundamental change to the UK’s approach to compensation.
Commenting on the report, Stuart Hanley, director of legal practice at claims firm Minster Law, said it confirmed that bodily injury costs had not been a significant driver of motor claims inflation. He added that the findings supported the decision not to intervene further in this part of the market and welcomed the fact that ministers had not adopted proposals to increase the small claims limit or reduce damages for non-whiplash injuries.