Skip to main content

Whiplash reform bill shelving is green light for personal injury 'gravy train'

whiplash-concept

Insurance premiums will continue to skyrocket for motorists as a result of the government's decision to shelve proposed whiplash reforms, the AA has warned.

The group said that the decision not to include the Prisons and Courts Bill in the wash-up, to how whiplash injuries are compensated will result in higher premiums for motorists.

Michael Lloyd, AA’s director of insurance said: “This is the second time that the reforms have been dropped. They were shelved last October following the Brexit vote, but were re-introduced by the new government.

“Drivers have seen their car insurance premiums rocketing and most will react with despair that the whiplash gravy train once again has the green light to carry on.

“There was some hope that if claims could be stemmed it would help to bring premiums down. There seems little prospect of that now.”

The shelving of the reforms have seen mixed reactions from the industry, with both the Association of British Insurers and claimant lawyer groups pleased that the reforms did not go through in their existing form.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@postonline.co.uk or view our subscription options here: https://subscriptions.postonline.co.uk/subscribe

You are currently unable to copy this content. Please contact info@postonline.co.uk to find out more.

Why can’t the FCA see and act on the full claims picture?

Editor’s View: Emma Ann Hughes argues the Financial Conduct Authority can either continue to defend its frameworks after Which?’s super-complaint or accept that collecting data is meaningless unless it triggers earlier, tougher and more visible intervention against providers that repeatedly fail policyholders.

Four biggest challenges facing insurers in 2026 revealed

Insurance Post reveals the four main challenges general insurers face in 2026 and the solutions experts from EY, the International Underwriting Association, AM Best, Moody’s, S&P, KPMG, Pathlight Associates and Sicsic Advisory say will matter most in the year ahead.

Forces set to reshape home insurance pricing into 2026

From climate impacts and subsidence surges to fraud trends, electric vehicle fire risks, regulation and artificial intelligence, Peter Farrelly, chief operating officer of Sedgwick, outlines the key forces set to shape home insurance pricing and development in 2026.

Most read articles loading...

You need to sign in to use this feature. If you don’t have an Insurance Post account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here