Financial Services and Markets Bill [HL]

Debate between Lord Altrincham and Lord Hunt of Wirral

Report stage
Monday 7th September 2026 Lords Chamber

[Lord Hunt of Wirral (Con)]

I support the noble Baroness, Lady Hoey, and the noble Lords, Lord Weir of Ballyholme and Lord Empey. In doing so, I declare my interest as past chairman of the British Insurance Brokers’ Association and a practising solicitor in the City of London.

We have campaigned within the broking community for proper regulation of claims management companies for a very long time. Therefore, BIBA was particularly disappointed that this Bill did not address the problem, which is urgent. Average motor claims costs in Northern Ireland have tracked more than 30% higher than in England and Wales since 2021. The figures given by the noble Baroness bear that out. There is a need to do something about this problem. I agree with noble Lords who have spoken that this is a great opportunity for the Government to put right the anomaly. Claims management companies add between 15% and 30% to a total claim by taking a percentage out of compensation that does not reach the claimant. We must keep reminding ourselves of that.

This amendment would be a practical, targeted correction alongside the Bill’s wider focus on consumer protection, redress and better regulation.

[Lord Altrincham (Con)]

My Lords, notwithstanding the anomalies that have been discussed—there are significant anomalies in insurance in England as well—we have some concerns about this amendment. It would hand the Treasury very extensive powers to act through secondary legislation, including the ability to amend primary legislation. We have raised concerns consistently in Committee and on Report about the use of broad, delegated powers of this kind. The same concerns apply here. Regulations being subject to the affirmative procedure provides a degree of parliamentary scrutiny. However, it does not alter the fundamental point that Parliament will be delegating significant legislative discretion to the Treasury before the detailed regime on any transitional arrangements has been set out.