Mr. Aidan Connaughton:

We must be cautious with the level of uncertainty that is there. Back in 2004, when we had a significant breakthrough, we saw a number of years in which insurers responded very positively to the reduction in claims costs. Over time, however, matters crept back to levels that were there prior to 2004.

We have just implemented a significant catalyst for change in the judicial guidelines, but we are now beginning to see a little bit of pushback from certain parties with regard to the implementation and execution of that. As an insurer, we are accepting 100% of the assessments from the Personal Injuries Assessment Board but we are seeing from plaintiffs or claimants a 70% rejection rate. There is, therefore, an inevitable concern around taking rates down too rapidly.

We have responded based on the positive shoots seen to date. AIG has reduced motor rates by 5.1% since the implementation of the judicial guidelines in April.