The British Insurance Brokers’ Association (BIBA) has backed the use of black box technology to help reduce the cost of motor cover in the UK.

In response to the Transport Select Committee's report into the rising cost of motor insurance in the UK, BIBA says ways of publicising and deploying the technology, which can assess how cars are driven, should be investigated.

The cost of motor insurance has increased sharply in the UK in recent years – especially for younger drivers – as a result of spiralling motor injury claims costs and insurance fraud. 

BIBA Head of Corporate Affairs Graeme Trudgill says several new insurance broker “black box” telematics products have been launched recently “and BIBA welcomes further discussion and wider debate on this technology”.

He says recommendations from the Transport Select Committee to tackle fraud, personal injury claims, uninsured driving and young drivers reflect the eight-point plan it put to the Government for solving the problem last year.

The committee has also called for the British Government to instigate a research project on the international experience of reducing the number of personal injury claims.

Rising personal injury claims in the UK have come about as a result of an increased propensity by consumers to claim, increases in the number of whiplash claims and the amounts awarded, and the impact of “no win no fee” law firms.

“The propensity to claim for a non-fault injury following a motor accident has tripled in the past seven years and this has led to more claims and higher premiums,” Mr Trudgill said.