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George Osborne - Friend or Foe? What Has Been the Reaction to the Autumn Statement from the Industry?

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What has been the reaction to the Autumn Statement from the industry? 

Huw Evans, director general at the Association of British Insurers:

"This is a significant breakthrough in tackling the compensation culture and is good news for motorists. Insurers have long called for meaningful reform in reducing costs in the compensation system, including increasing the small claims track limit. Previous government reforms have already led to insurers passing on over £1bn in savings to motorists through lower premiums, and in a highly competitive motor insurance market, insurers will continue to pass on savings to customers."

Jonathan Wheeler, president at the Association of Personal Injury Lawyers:

"In 2012 the insurance industry promised the government that if reforms to the way whiplash claims are handled were introduced, savings would be passed on to motorists through their premiums. All that has changed since then is that the insurance industry has failed to live up to its own promises. Since 2012 the portal (a streamlined system for dealing with personal injury claims) has been extended, medical reporting for whiplash claims has been completely overhauled, sharing of fraud data has been introduced and solicitors fees have been slashed. Government figures show whiplash claims have fallen by more than a third in the past four years. Yet still insurance premiums have increased."

"Only two years ago the government ruled out increasing the small claims court limit because there were no adequate safeguards to protect genuine claimants. There are still no adequate safeguards. If the small claims court limit is raised to £5,000 all that will happen is that genuine victims of injury will not be able to afford the legal help they need to bring genuine claims and there will be an epidemic of cold calling from claims management companies as they rush to take advantage of vulnerable people who won't be able to afford legal representation. We need to remember that these are people who have been needlessly injured by the negligence of others. Removing the right to damages for pain and suffering would show a callous indifference to the suffering of people who were needlessly injured by the negligence of others."

Who are they really trying to help with these proposed changes?

It is no secret that certain members of the Government have powerful friends in the Insurance sector and also direct financial interest in some insurance companies. So who are they really trying to help with these proposed changes?

Previous promises that reforms to the mythical ‘compensation culture’ would lead to reduced insurance premiums have simply not materialised. What costs a £1 billion saving to the Insurers? Potential large scale redundancies of professional workers, resulting in a substantial loss of tax revenue and increased social security payments?

If you want further information about this particular topic, or wish to discuss the possibility of bringing a claim for Clinical Negligence - or indeed any other type of injury, please contact the Dutton Gregory Clinical Negligence Team on (01202) 315005, or email