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Declaring an interest, I am in the field of PI.

What the public needs to know is that the cost of car insurance is only affected marginally by the cost of claims, the more significant determinant is the return on the % of policy premiums which is invested.

If returns are low then premiums will rise, conversely when all is milk & honey and returns are better than expected then there is headroom for premiums to fall and competition on price.

Despite the introduction of the MoJ portal the Jackson reforms & etc which have slashed costs on lower value claims the premiums have not seen a close correlative change (even allowing for lag).

There is then no evidential basis fr saying that £x reduction in claims costs = or tends to = £y reduction in gross premiums.

Coupled with the loss to the MoJ and HMG via IPT (a £50 reduction in premium = a £5 loss of IPT) this is a bad policy and we all know need too fight harder, lobby more effectively and get the SRA to deal with the rogues properly so the ABI don't have the easy targets that they do at the moment.

Alsso an increase in the ST threshold to £2k with a 3 year transitional period would be a quid pro quo.