Overview

This Civil Liability Bill amends existing laws concerning personal injury claims in England and Wales. Key changes include requirements for insurers to report on the bill's impact on premiums and payouts, ensuring transparency and allowing for assessment of its effectiveness.

Description

The bill introduces amendments to the Civil Liability Act. The most significant change mandates insurers to provide data to the Financial Conduct Authority (FCA) on the effects of the bill on personal injury claims. This data includes comparisons of payments and premiums before and after the bill's implementation, broken down by specified ranges. The Treasury will use this data to produce a report to Parliament by April 2024, analyzing whether policyholders have benefited from cost reductions for insurers. The Lord Chancellor must consult with the Lord Chief Justice before making regulations under this section. The bill also clarifies some definitions related to personal injury insurance and specifies its application to England and Wales only.

Government Spending

The bill does not directly allocate new government spending. The cost of data collection and report compilation will be borne by insurers and the FCA. The potential long-term impact on government spending (e.g., through reduced legal costs) is unknown but will be assessed by the Treasury.

Groups Affected

• Insurers: Required to collect and submit data to the FCA, potentially incurring costs. May experience changes in profitability depending on the impact of the bill.
• Policyholders: May see changes in insurance premiums, potentially benefiting from reduced costs if the bill's impact is as intended.
• Claimants: Potentially affected by changes in the amount of compensation awarded for personal injury claims.
• The Financial Conduct Authority (FCA): Responsible for receiving and managing insurer data and assisting the Treasury in report preparation.
• The Treasury: Responsible for preparing and presenting the final report to Parliament on the bill's impact.

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