In recent years, the UK motor claims landscape has undergone considerable transformation, and 2025 has proven to be no exception. New and evolving regulations continue to reshape how claims are processed, who’s liable, how damages are calculated and how quickly customers expect resolutions.

For insurers, accident management providers and claims handling specialists, keeping up with legislative change has now become a matter of competitiveness, and those who fail to adapt risk falling behind both in performance and customer satisfaction.

To help, we’ve taken a deep dive into the key regulatory changes that have affected motor claims in 2025, and pinpointed how agile providers such as ourselves at S&G Response, are helping clients stay compliant, efficient and focused on delivering exceptional service.

Starting with…

1. The tightened rules around credit hire and fraud prevention

One of the most impactful developments in 2025 has been the Financial Conduct Authority (FCA) and the Ministry of Justice (MoJ)’s increased scrutiny on credit hire practices, whereby following a number of high-profile cases in 2024 involving inflated hire rates and questionable claims, regulators have introduced stricter guidance on:

• Proportionality of hire duration and vehicle type
• Better documentation of customer need and vehicle usage
• And more rigorous vetting of claims to prevent opportunistic fraud

This shift has placed added pressure on insurers and claims handlers to evidence the reasonableness of credit hire arrangements. However, we’ve stayed ahead of this at S&G by investing in intelligent triage, improved third-party capture strategies and a refined supplier network. This means that our processes ensure that only genuine claims proceed, vehicles are appropriately matched to customer needs and costs are tightly controlled – all of which protects our insurer clients from unnecessary exposure.

2. The ongoing impact of the Official Injury Claim portal

While the Official Injury Claim (OIC) portal has been in place since 2021, its impact continues to evolve, and in 2025, new reforms have aimed to improve usability and transparency, especially for unrepresented claimants.

However, these changes have also brought new expectations for faster decision-making and clearer communication from insurers and their agents, which means that for lower-value RTA claims, where liability and injuries are minor, speed and clarity are now the key performance indicators, and any delays in uploading evidence, responding to queries or issuing payments can lead to complaints or escalations.

At S&G however, our processes are already fully integrated with portal workflows, and use automated systems to ensure that documentation is accurate, timelines are met and claimants receive timely updates – something which is critical in reducing dispute rates and ensuring cases are handled in line with the latest requirements.

3. Increased ESG and sustainability obligations

In 2025, regulatory expectations around Environmental, Social, and Governance (ESG) practices have intensified, and the motor claims sector has not been exempt.

Today, this includes:

• A greater scrutiny on use of green parts or recycled components
• Minimising unnecessary vehicle movements
• Prioritising repair over replacement
• And working with repairers who meet environmental and ethical standards

Yet, while this may sound daunting, we’ve embraced this change at S&G, by leveraging our carefully curated repair network and using smart triage to reduce waste and improve carbon efficiency. What’s more, we also work with environmentally responsible partners and adopt data-led claims routing in order to help our clients meet their regulatory goals while keeping the customer journey seamless.

4. Data protection and customer communication

Following continued public concern about data security, 2025 has seen updates to data sharing and retention protocols, particularly for companies handling sensitive information in multi-party claims environments.

The new rules emphasise:

• Clear consent from the claimant at each stage of the process
• Justified sharing of data with repairers, hire companies or legal representatives
• Secure data transfer methods
• And shorter retention periods unless data is legally required

For companies managing large volumes of claims, failure to follow these updated rules can result in hefty penalties and reputational damage, which is why at S&G, we’ve responded with robust data governance policies and digital claim platforms that are fully secure, GDPR-compliant and designed for transparency, meaning clients can rest assured that both their data and their customers’ is managed with professionalism and full regulatory alignment.

5. An increasing focus on customer outcomes

Regulatory changes in 2025 have also been shaped by the FCA’s continuing emphasis on “consumer duty”, which is a principle requiring businesses to act in good faith, avoid foreseeable harm and support informed decision-making by customers.

For the motor claims sector, this means:

• Providing clear options around repairs, vehicle hire or settlement
• Communicating in plain language and without jargon
• And being proactive in managing expectations and resolving issues early

All of which is particularly critical to us at S&G, as we’ve built our entire reputation around putting the customer first.

To us, it’s essential that our in-house claims teams are trained in empathy, accuracy and efficiency, to ensure that each motorist receives the guidance and support they need at what is often a stressful time. Plus, with our real-time client portal, our partners can track claims progress and performance against SLAs with complete transparency too.

But above all, we deliver a friendly, reliable service every time, which puts all stakeholders at ease knowing exactly what’s what, in a language that everyone speaks. This means that at all times, we’re all on the same page, with the same updates, working to the same end goal.

After all, we’re here to help, and with our teams’ knowledge, experience and a people-first approach, we make sure we reach it, every time.

Staying ahead in an ever-changing environment

If one thing’s for certain, the motor claims industry will always be shaped by change, whether from new technologies, shifting customer expectations or evolving regulations.

Now, the demands on insurers and claims providers are growing, and staying on top of it all requires more than just reactive compliance, it demands strategic partnerships with providers who understand the regulatory landscape inside and out.

It demands S&G Response.

Reach out today to find out more about how we can help.