In response to the news of a new government taskforce motor insurance premiums, James Daley, Managing Director of consumer group Fairer Finance, said:

“It's great to see the government following through on its manifesto commitment to look at the rising cost of car insurance. But it's important that the opportunity is not missed to look at issues in the insurance industry that run beyond the motor sector. Insurance pricing is opaque and not always fair to consumers - not just in motor but in all corners of general insurance. As pricing becomes more sophisticated and more personalised, growing numbers of consumers are finding themselves priced out of the market.

“It's time to take a step back and look at how to build a fairer market that provides affordable access to insurance for all consumers. It's encouraging that the regulator is also looking at premium finance - but this should include a consideration of whether we need this sector at all. It only exists because most insurers insist that consumers pay for their annual insurance upfront -  forcing them to borrow at punitive interest rates if they can't manage it.”