Our comments to the Government’s commitment to driverless cars.
Reacting to comments on the insurance sector in the Queen’s Speech, David Brown, Insurance Partner, KPMG says:
“The Queen highlighted two very important issues for the UK insurance market: managing rising motor premiums and supporting the development of driverless technology.
“Motor premiums continue to rise fast in line with costs and unfortunately I don’t think consumers have seen prices reach their peak just yet. Whiplash is no longer the main concern, with the increasing cost of accidental damage and large bodily injury claims the biggest drivers of price hikes. It’s great that the Government wants to work with the industry to help consumers but we also need to be mindful of the stresses on firms, as margins remain under pressure and the geopolitical agenda unsettled. Some stability around insurance premium tax and clarity around how large bodily injury claims are settled would go a long way towards helping the insurance industry give consumers a better deal.
“The Government’s continued commitment to innovation is to be welcomed. Driverless cars have the potential to make our roads safer and put more power into the hands of consumers as increased data means products and prices are more closely tailored to the individual; and with less risk, prices will come down. Technology is challenging insurers to think differently about the products they offer and the prices they charge. To ensure the UK remains a leader in insurtech and driverless technology we need close collaboration between the many parties who govern the UK’s roads and infrastructure, including Government, car manufacturers and insurers. I am pleased that despite the many pressures on the industry and the government, we all remain committed to motor innovation.”
Notes to editor:
For media enquiries, please contact:
Christina Bridge - PR Manager (Banking, Insurance, Investment Management & Pensions)
T : +44 (0) 20 7311 4252
M : +44 (0)77 8950 4905
KPMG Press Office
T : +44 (0) 207 694 8773
KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 13,500 partners and staff. The UK firm recorded a revenue of £2.07 billion in the year ended 30 September 2016. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 189,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.