Esure's Stuart Vann on why whiplash reforms need to stay on the government agenda

There is a huge political agenda for the government to deliver but it's important not to lose sight of the commitments already made.

Not least of these for our industry are the proposed whiplash reforms that were announced last year. The UK insurance industry has been dealing with whiplash for a number of years and is all too familiar with the staggering £2bn cost per year to the industry, adding pounds to the average motorists' premium.

I believe it is hugely important these changes are implemented, even taking into account the negotiations the government has on its plate around Europe.

Let's not forget that this is the second attempt to curb the problem after the introduction of the Legal Aid, Sentencing and Punishment of Offenders Act back in 2013, the effectiveness of which we now know was relatively short-lived.

It was successful in that there was a reduction in the number of claims management companies being set up. However those that remain have changed their business models and become more effective, so the true impact has been rather limited and the industry is in many ways back to the same place it was before - a look at the portal statistics shows this.

Looking at the July numbers of injury claims being registered, although very recently there have been seen some minor decreases, it's too early to predict if this is a longer term trend, and the point is they remain comparable to pre-LASPO levels. What could happen to these claim numbers, if and when, a date for the reforms becomes clear, is also up for speculation.

However, in anticipation of the expected positive effect of the LASPO changes, the industry reduced rates but the benefits did not materialise in the way it hoped. Rates are now trying to catch up. We need to learn lessons from this and ensure we fully understand how the reforms will work, that they are truly effective and there aren't any loopholes so we don't find ourselves in a situation where we transfer costs from one route to another. Solvency II makes this next stage of the cycle more interesting too, being pro-cyclical.

I am confident these reforms, if implemented properly, will be a huge step forward in addressing the problem of scurrilous whiplash claims and the industry and the Association of British Insurers has done a huge amount of work in getting us this far. We have a new Chancellor of the Exchequer leading HM Treasury, who I hope will continue with these reforms and announce the opening of the consultation in early autumn.

The original deadline of April 2017 is only a matter of months away and it would be optimistic to say that the changes will be in by then, especially with decades of European Union legislation to consider, but we must keep pushing to bring these reforms in next year and eradicate the problem that faces the industry and motorists in the UK.