Seasonal Greetings from The CHO

It’s been quite a year! The General Election brought in a Labour Government for the first time in 14 years, and it promptly announced that it would oversee an investigation into the price and affordability of motor insurance, fulfilling a pre-election promise.

The Motor Insurance Taskforce (MIT) promises to be as thorough an investigation of the motor insurance market as we’ve had for many years, and is a response to historic highs in the cost of buying motor insurance post pandemic.  The EY motor report suggests that, in 2024, insurers will return to profit, before making a slight loss in 2025.

What it means is that there’s going to be a lot of scrutiny on our industry, including credit hire. We have written to the Economic Secretary to offer our assistance to the taskforce should they wish to explore the credit hire sector more closely, and while we believe the key concern of government is affordability, especially for those on lower incomes, the costs of claims will undoubtedly be on the agenda.

So it is timely that negotiations continue on the revised GTA, with both insurers and CHCs determined to find a compromise solution that keeps a lid on frictional costs and improves the customer journey.

The FCA is keen to see improvements to claims performance as part of its Consumer Duty initiative, and at the CHO we are wholly focused on delivering the best possible consumer outcomes.

I am confident that 2025 will see the negotiations bearing fruit, with new initiatives, including dispute resolution, a formal process to audit BHR and the creation of a Strategic Board, with teeth, to oversee the functioning of a revised GTA, coming on stream.

I want to pay tribute to the hard work of members of the CHO negotiating team, and our colleagues from the motor insurance side for the constructive spirit in which we’ve approached some thorny issues.

We’ll be in touch in the next few weeks for the annual renewal round look forward to counting on your continued support during 2025. Next year promises to be as volatile and changeable as this year, thanks to a host of macro issues that will bear down on the UK economy.

Perhaps this advice comes to mind as a result: “Worry about the things you can do something about, don’t worry about the things you can’t.”

I am very much looking forward to winding down a little over the Christmas and New Year holiday, to be ready for whatever 2025 has in store.

In the meantime, I want to thank all our members for the trust they put in the CHO to look after their interests, and to the CHO team for their support and hard work during 2024.

May I wish you all a very merry and restful Christmas, and a prosperous, happy and healthy 2025.

Anthony Hughes
CEO and Chair