The Transport Ministry is planning to hold a seminar to find out the reasons for recent hike in motor insurance cost.
Replying to a written question by Tory backbench MP Anne Soubry on hike in Motor premiums, Transport minister Mike Penning said: “The setting of insurance premiums is a matter for the insurers based on a commercial decision”.
However, the government currently does not monitor premiums by vehicle insurers, he said. “The Office for National Statistics collects data on family expenditure on vehicle taxation and insurance costs, but this department does not separately monitor premiums”, he added.
The government agrees with the findings of the Transport Select Committee’s recent report, he said adding: “I welcome the recent Transport Select Committee’s report on ‘The cost of motor insurance’ and agree with their conclusions on the importance of this issue and the need to look at a range of ways of reducing costs”.
The government would need some time to study over the report and invite different stakeholders before announcing any policy decision, he observed.
“The Department for Transport will need time to fully consider and formally respond to the report. A seminar to discuss the issues with key interested parties is being planned”, he added.