Tub thumping aside, transport secretary Justine Greening’s call for a summit on injury claims is a step in the right direction

Transport secretary Justine Greening is the latest politician to weigh into the whiplash debate, with reports today that she has called a summit of cabinet ministers. It follows former home secretary Jack Straw’s high-profile intervention over the rising cost of motor insurance last year.

The political spotlight is to be welcomed, because it is only through wholesale legislative reform that some order will be brought to the free-for-all currently surrounding motor claims. Whiplash is one of the most significant elements of this, with Britain seeing substantially more claims than anywhere else in Europe, and this is directly affecting motor costs.

It’s unlikely that Britons have weaker necks than their continental counterparts; rather the trend must be down to the spiralling number of claims farmers, encouraged by the systemic rot of referral fees and enabled by a laxity towards the issue in the medical profession and judiciary.

Greening can certainly help fix the problem by pushing through the reforms of the system that the industry has been calling for. Less helpful, however, are her tub-thumping comments such as: “It’s time for insurers to get a grip and put their houses in order.” Blaming the insurance industry is all too easy – but it’s simply wrong, and it won’t solve the problem.

Buyer’s market

Brit boss Mark Cloutier continues to shake things up, with today’s news that he’s outsourcing the entire marketing and communications function. Meanwhile the sale of the insurer’s UK regional arm appears to have stalled, suggesting he may be struggling to find a buyer at a price he can justify.

With Groupama also on the block, this is an opportune moment for any new entrant – be it private equity or a foreign insurer – looking for a route into the UK market at an attractive price.

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