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<p>The Government welcomes the commitment of 84% of UK motor insurance providers to
pass on to consumers savings arising from Government measures in the Civil Liability
Bill and the wider whiplash reform programme.</p><p> </p><p>Motor insurance is intensely
competitive on price and we expect that insurance companies will have little choice
but to pass on savings, or risk being priced out of the market. Insurers have pointed
to how they passed on to customers the benefits of previous Government action to cut
the cost of civil litigation, without the need for regulation. The Government will
continue to closely monitor the industry’s reaction to these reforms and will regularly
engage with them on how they are meeting their commitment. If the industry as a whole
sought to avoid passing on savings the Financial Conduct Authority and the Competition
and Markets Authority would investigate.</p>
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