Seven years post-implementation we understand that the Government is planning a post-implementation review of the operation of the Civil Liability Act later this year.

The Act introduced amendments to the process for calculating damages for whiplash claims (Part 1) and calculation of the personal injury discount rate (Part 2).

The Act requires a review of the effects of Parts 1 and 2 on individuals who hold policies of insurance. The report following the statutory review is due to be laid before Parliament by the end of this month. The report should demonstrate whether savings have been achieved by the Act and whether those savings have been passed on to customers.

The post-implementation review that has now been announced will follow the delivery of the statutory report to Parliament and the findings of that report will no doubt help shape the nature of the review.

We have been expecting the post-implementation review for some time. 

The Justice Select Committee (JSC) recommended in September 2023 that the Government conduct a follow-up assessment one year after the publication of its planned review. The Government response to the JSC in November 2023 stated:

"We also note the recommendation that the Government conduct a follow-up assessment one year after the publication of its planned review. Whilst there is no statutory requirement to complete a follow up exercise we do not disagree with the suggestion. We would, though caution that it is too early to make such a commitment. We will, however, continue to discuss this point with HMT and FCA as their work on the savings report progresses".

The scope and format of the post-implementation review is not yet known.

It may well provide an opportunity for insurers to raise concerns related to the operation of the Act (e.g. dealing with mixed injuries and increasing the small claims limit), whatever the scope of the review itself.