Daily Insurance Industry News
 
 
Daily Insurance Industry News
Wednesday 18th of July 2018
September 5, 2011

ABI calls for compensation reforms

by Richard Kilner

Story link: ABI calls for compensation reforms

The Association of British Insurers (ABI) has been joined by a number of major retailers, including Argos, ASDA, Ford, and Whitbread PLC, Lloyd’s, business organisations, in calling for an end to the ‘have a go’ compensation culture.

The call comes as the ABI publishes a report indicating that genuine claimants are often been failed by the system, and that the costs are being paid by consumers, local authorities and the NHS.

From 2002 to 2010 the number of personal injury claims surged by 72%, with an average of £289 acquired if claimants dealt with an insurer and not a lawyer.

ABI Director General Otto Thoresen warned that ambulance-chasing lawyers could still manipulate the civil litigation system, which he said was failing real claimants.

Thoresen added that the situation could be improved but that measures needed to be taken, including the reduction of excessive legal costs.

In July of this year The Co-operative Insurance called for lower costs and premiums by making the sale of claims books to third parties illegal and providing Legal Expense Insurance cover as standard with motor policies.

 

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