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"RTA low value claim handlers are a tiny part of the industry.“

I can only assume you don’t work in the industry, as the complete opposite is true. Many people at insurers face redundancy if these reforms come in. They won’t be moved to other departments unless there is suddenly a massive rise in other types of claims.

“Why should your insurance premiums be reduced?”

Because that’s what the government and insurers have promised. It’s the entire justification for past and future reforms.