South Antrim MP Robin Swann
The UK Government has committed to tackling the rising costs of car insurance premiums in the United Kingdom - an issue which is particularly pressing, and one which Robin Swann MP says he has a made a personal priority since being elected to Parliament.
In October 2024, Mr Swann welcomed the creation of the Taskforce and wrote to them to urge the group to engage with the Northern Ireland Executive and insurance customers from Northern Ireland and received assurances that they had plans to do so.
Since then, Mr Swann wrote again to the Taskforce in November to ask for an update on the activity of the Taskforce, and to find out more about its membership and its level of engagement with the devolved nations.
The Department of Transport’s response said:
“…the cross-government Taskforce on motor insurance, co-chaired by the Department for Transport and His Majesty’s Treasury, met for the first time on Wednesday 16 October. The next meeting is being scheduled for the Spring, but work is progressing in the meantime. It is hoped that the Taskforce will take around 18 months to complete its work.
“The Taskforce is comprised of Ministers from relevant government departments, the Financial Conduct Authority and the Competition and Markets Authority. It is supported by a separate Stakeholder Panel of industry experts representing the insurance, motor, and consumer sector.
“We will meet representatives from the Northern Ireland Executive, as well as from the Scottish Government and Welsh Government, to discuss the key differences in markets across the UK and how these affect the cost of insurance for customers. We want to ensure the Taskforce collaborates effectively to reflect diverse needs, challenges and opportunities across the UK.”
Following this engagement, Mr Swann has this week shared with the Car Insurance Taskforce a number of considerations and recommendations regarding the unique circumstances which impact the cost of car insurance in Northern Ireland.
The information shared to the Taskforce by the South Antrim MP included:
Increased data transparency reporting – Motor insurance companies are mandated to report little of the data they hold. This is particularly the case in Northern Ireland where even cost by postcode data is no longer reported.
Requiring car insurance companies to report non-commercially sensitive data to the Department of Transport on a quarterly basis would allow for the Department to then analyse and publish a summary of this information. This summary would in turn provide greater transparency within the sector, hold providers to account, and would place consumers’ quotes within a wider context.
This data would include average premium costs per postcode, power region in the UK, and per age group. It may also include the number of claims per region as well as the average number of policy holders per region.
Working with NI Executive to encourage market competition - Northern Ireland has a smaller market than the other constituent nations of the UK and it also has a much smaller level of market competition.
NI has nine companies accounting for 74% of the market, with the remaining 26% being accounted for by 90 smaller companies. Unlike the rest of the UK, Northern Ireland has a significant market leader. AXA alone hold almost 25% of the Northern Ireland market with LV coming in at second place with 9.1%.
Although Northern Ireland has a small market with a small data set, working with the Northern Ireland Executive to encourage providers to enter the Northern Ireland market is a measure which may go some way in addressing these issues.
Tighter regulation of claims management companies - According to the ABI, claims management companies “actively pursue customers” following collisions, and these companies can add between 15% and 30% it the total cost of claims.
Protecting consumers from pursing firms through tighter regulation is one way of ensuring customers are not exploited and that the cost of car insurance claims is not unnecessarily high.
Limited negative bearing of Car Theft on NI costs - Car theft and the rate at which it occurs if often cited as a factor taken into consideration in car insurance quotes, often resulting in variation in neighbouring postcodes.
It should be noted that the rate of theft or unauthorised taking of a motor vehicles in Northern Ireland is the lowest in the United Kingdom. In 2023/24 (according to Commons Library):
• England and Wales had a rate of 2.1 offences per 1,000 head of population.
• Scotland had a rate of 0.9 offences per 1,000 head of population.
• In Northern Ireland, had a rate of 0.5 offences per 1,000 head of population.
Given that the theft rate is lower in Northern Ireland than in Great Britain, this should have a positive bearing on insurance quotes and premiums in NI.
Mr Swann did also highlight considerations regarding personal injury compensation in Northern Ireland. In his correspondence with the Taskforce, Mr Swann said:
“Although the Northern Ireland and the England & Wales [Personal Injury Compensation] guidance is similar… the main difference is the value of the compensation amounts. The Northern Ireland guidance on suggested damage awards is significantly higher than that in GB.
“One example of this is the suggest bracket for damages for injuries which result in quadriplegia in Northern Ireland is £590,000-£870,000, and for the same injuries in England and Wales, the guidance suggests £396,140-£493,000). This variation is reflective across the guidance and highlights the vastly differing amounts in the two sets of guidelines.
“…according to the [Association of British Insurers], compensation costs for bodily injury because of a traffic collision was 40% higher in Northern Ireland than the UK average. The average compensation payout in Northern Ireland for bodily harm in the same year was £20,100.”
Upon writing to the Taskforce, the Ulster Unionist MP said:
“Car insurance is a required purchase – if you want wheels on the road, you need to get it – and so it can’t be out of reach for our drivers. It should also provide adequate cover, so drivers are able to make a claim when it is their right to do so. That’s why this issue is important to me, and why I’m keen to ensure the Taskforce gives special attention to the unique circumstances facing Northern Ireland’s drivers.”