Government reveals final motor insurance taskforce report and actions to be taken

The final report of the cross-government taskforce on motor insurance has been published today (10 December 2025).

The taskforce, which was setup in October 2024, has worked to identify the factors behind higher premiums and find propositions to keep costs under control.

In its report, the taskforce noted that the latest data from the ABI shows that the average cost of motor insurance premiums has decreased, following the peaks seen between 2022 and 2024.

The average annual premium paid by motorists fell by £56 between Q3 2024 and Q3 2025, from £607 to £551.

However, the report also noted that claims costs remain high, with Q3 2025 seeing £3bn paid out in motor insurance claims.

”This sustained level of claims costs continues to place significant upward pressure on premiums,” the report said.

Tackling claims costs

In turn, the taskforce said that across government, departments will continue their efforts to address the broader factors that contribute to the cost of claims.

This includes efforts to tackle vehicle-related crime, making roads safer and working closely with industry to encourage innovation in new vehicle technologies, driving efficiencies and reducing costs.

The government will also continue to work closely with the FCA to support possible insurance use cases for smart data, including in the FCA’s Smart Data Accelerator.

Meanwhile, the report also said that the FCA will work with the ABI and firms to consider how claims can be better managed to ensure greater efficiency and cost control, without adversely affecting customer outcomes.

And it also noted that the ABI and firms are working to develop a good practice code to reduce referrals to third parties and capture the management of more claims.

Fraud and uninsured driving

In terms of tackling fraud, the report noted that the FCA will continue to call for more action to be taken by social media companies to prevent fraudulent content from appearing on their platforms.

Where the FCA identifies unlawful content, including ghost broking, ad-spoofing and material posted by finfluencers, it will seek to get the content removed and work with other partner agencies, including law enforcement, working to combat these activities.

As for uninsured driving, the report said that The Department for Transport will consider penalties associated with uninsured driving. For example, the Motor Insurers Bureau (MIB) is calling on the government to increase the fine for uninsured driving from £300 to £1,200.

Government statement

In a statement following the release of the report, the government said: ”Since it was formed in October 2024, the taskforce has worked across government departments and with our independent regulators to understand this complex market and to agree a set of actions that aim to stabilise and reduce the premiums paid by drivers.

“The taskforce would like to acknowledge the support and insight of the stakeholder panel, representing both consumers and the motor and insurance industries and the insight of our colleagues in the devolved administrations. Their perspectives have been vital as we have sought to capture the needs and concerns of people and firms across the UK.

“The taskforce’s work has now concluded. Over the coming months, the government will continue its work to deliver against the actions set out in the report.”

Read the full report here.