Experts respond to insurance report

A parliamentary report on car insurance costs has been welcomed by insurance experts, after the Transport Select Committee released its findings on Thursday.

The Association of British Insurers (ABI) made clear its support of the findings, although the group believes some aspects of the report are not strict enough on legal profiteering, especially lawyers' fees and referral costs.

ABI members were particularly supportive of the report's stance on whiplash claims, which it sees as a key factor behind soaring insurance premiums.

Speaking after the report's publication, the ABI's director of general insurance Nick Starling outlined the association's reaction to the report.

"We are pleased that the Transport Select Committee has recognised that spiralling personal injury claims are the real reason car insurance premiums have been increasing", said Mr Starling. It is absolutely critical that Britain's whiplash epidemic is tackled once and for all.

"The committee is also right that the fees lawyers receive need to be reviewed as they add unnecessary cost.

"However, we are baffled that the committee has not called for referral costs to be banned altogether, as doing so would improve the situation for customers."

Copyright Press Association 2012