‘(1) Any savings made by any insurer as a result of anything in this Act or associated changes by regulation shall be passed to policyholders by way of reduced premium.

(2) The Financial Conduct Authority shall require all such insurers to submit an annual report detailing the savings they have made and how all those savings have been used to reduce policyholder premiums.

(3) In this section—

“savings” means any reduction in an insurer’s outlays in damages or costs paid in personal injury claims from the time this Act receives Royal Assent;

“insurer” means any insurer holding a licence to offer UK motor insurance;

“policyholder” means the holder of a policy of motor insurance with the insurer;

“premium reduction” means a reduction in the annual cost of a policy of motor insurance taken out by a policyholder.’—(Gloria De Piero.)

This new clause would require insurers to pass on to insurance consumers all savings made as a result of these changes.

Brought up, and read the First time.

Question put, That the clause be read a Second time.

The Committee divided:

Ayes 8, Noes 9.

Question accordingly negatived.

New Clause 7