What does the Government’s Road Safety Strategy mean for Insurers and Retailers?

On 7 January, the Government published its long-awaited Road Safety Strategy, the first comprehensive national strategy in over a decade and one that had been widely expected in 2025. From an insurance perspective, much of the strategy will be welcomed. It adopts a Safe System approach, recognises that progress on road safety has stalled, and places renewed emphasis on enforcement, vehicle technology, education and shared responsibility across government, industry and road users. However, as with many recent policy announcements, delivery will depend heavily on further consultations and pilots.

Below we highlight some of the key elements:

Headline targets

The strategy sets two overarching national targets, using a 2022–2024 baseline:

• 65% reduction in the number of people killed or seriously injured on roads in Great Britain by 2035
• 70% reduction in the number of children (under 16) killed or seriously injured on roads by 2035

Progress will be tracked through a suite of Safety Performance Indicators (SPIs), intended to assess whether interventions are effective and where further action is required.

Young drivers – welcome focus, but limited ambition

Drivers aged 17–24 represent around 6% of licence holders yet are involved in 24% of fatal and serious collisions. From an insurer’s perspective, this over-representation is well understood and reflected in both claims experience and pricing.

The Government has confirmed that it will:

• Consult on introducing a minimum learning period of three or six months for learner drivers
• Consult on a lower blood alcohol limit for novice drivers, as part of a wider consultation on drink driving reform in England and Wales

These steps are welcome. In particular, a minimum learning period has the potential to improve basic competence and exposure to a wider range of driving conditions.

However, the strategy stops short of endorsing any form of Graduated Driving Licence (GDL). This is disappointing. The insurance industry, road safety organisations, and many bereaved families have, for many years, called for GDL-type measures – such as restrictions on night-time driving or carrying young passengers – precisely because these measures address the highest-risk scenarios that drive many of the most catastrophic and fatal claims involving young drivers.

Drink driving, enforcement, and behaviour change

The strategy places renewed emphasis on enforcement and behavioural change, including:

• Consultation on lowering the drink drive limit in England and Wales, which has remained unchanged since 1967 and is currently the highest in Europe
• Review of penalties and mandatory training for drink and drug driving offences
• Consultation on the use of alcohol interlock devices and new powers to suspend licences pending court outcomes in the most serious cases
• Feedback on introducing penalty points for failure to wear a seat belt, and additional points where drivers fail to ensure child passengers are belted
• With one in six road fatalities involving drink driving in 2023, these proposals will be of clear interest from both a risk and claims management perspective.

Illegal number plates and uninsured driving

The strategy also commits to:

Consultation on addressing illegal and ‘ghost’ number plates, designed to evade enforcement cameras
Gathering feedback on tougher action against those who fail to stop and report collisions, drive uninsured, unlicensed or without a valid MOT
The prevalence of uninsured and untraceable drivers has a direct financial impact on the insurance industry through collective funding of the Motor Insurers’ Bureau, and these measures will therefore be particularly closely watched.

Vehicle technology, data and post-collision response

Key proposals include:

• Consultation on mandating 18 new vehicle safety technologies for certain vehicle categories, including advanced driver assistance systems (ADAS)
• Collaboration with industry to maximise the safety benefits of ADAS, and to ensure drivers receive clear information about system capabilities and limitations
• Establishment of a Road Safety Investigation Branch, supported by improved linkage of police collision data and healthcare data
• Further work on international crash testing standards and research into issues such as headlamp glare
• For insurers, these measures have implications not only for casualty reduction, but also for liability analysis, repair costs and future claims complexity.

Work-related road risk

An estimated one in three road fatalities involves someone driving or riding for work. The strategy therefore proposes a pilot National Work-Related Road Safety Charter, establishing a national standard for employers whose staff drive or ride as part of their role.

This will be of particular interest to retailers, particularly those with large fleets, delivery operations or employees who regularly drive between sites. Over time, this may translate into clearer expectations – and potentially additional responsibilities – around employer oversight, training and compliance with existing health and safety obligations.

Next Steps

A clear theme running through the strategy is that much of the detail is yet to come. Many of the most significant measures – including those on young drivers, drink driving limits, vehicle technology, enforcement powers and employer responsibilities – will be taken forward through consultations, pilots and further research.

At this stage, firm timescales have not been set for most consultations, although the Government has indicated that work will begin during 2026, overseen by a new Road Safety Board and supported by an Expert Advisory Panel.

Keoghs will actively engage with relevant consultations as they are launched and will keep clients informed.

For more information, contact:

Natalie Larnder