Swann tables amendment to tackle high car insurance premiums in Northern Ireland

Robin Swann MP has tabled an amendment to the Financial Services and Markets Bill aimed at curbing soaring car insurance premiums for motorists across Northern Ireland, with a focus on supporting young drivers and local households facing severe financial pressure.

The amendment seeks to extend the regulatory remit of the Financial Conduct Authority to cover Claims Management Companies operating in Northern Ireland. Currently Northern Ireland remains the only part of the United Kingdom where these firms are not regulated by the FCA, a gap left unaddressed when England, Scotland and Wales were added, but Northern Ireland wasn’t due to the Assembly being down at the time.

Data highlights that Northern Ireland has a higher proportion of Claims Management Companies than the rest of the UK. According to the Association of British Insurers, these firms actively pursue drivers following a collision, taking between 15% and 30% of compensation payouts and adding significantly to the overall cost of a claim.

Alongside FCA regulation, Mr Swann is also calling for pragmatic measures such as an online injury claims portal to reduce court backlogs and lower legal expenses.

The South Antrim MP said: "Motorists across Northern Ireland continue to face disproportionately high car insurance premiums, placing a heavy burden on local families and particularly on young drivers. Unregulated Claims Management Companies act as a major structural driver inflating insurance costs, often taking up to 30% of compensation payouts and driving up expenses across the entire market.

"Extending FCA oversight to Northern Ireland is a vital, common-sense step that should have happened years ago. While multiple factors contribute to high insurance rates locally, closing this regulatory loophole will protect consumers, curb excessive claims expenses and help deliver a fairer deal for our drivers."