Daily Insurance Industry News
 
 
Daily Insurance Industry News
Thursday 18th of October 2018
March 29, 2011

ABI response to “no win, no fee” reforms

by Gill Montia

Story link: ABI response to “no win, no fee” reforms

The Association of British Insurers (ABI) has welcomed Justice Secretary Ken Clarke’s confirmation that “no win, no fee” rules will be reformed, saying this will “put the brake on runaway legal costs and mean a better deal for genuine claimants and insurance customers”.

The ABI has long been campaigning for reforms to the current system, having cited high legal costs in settling personal injury claims as one of the main reasons for the general rise in motor insurance premiums.

The Association’s director of general insurance and health, Nick Starling, explains: “For too long ambulance-chasing lawyers and claims management firms have encouraged many people to believe that there is a compensation culture to exploit.”

He adds: “The result has been a slower process for genuine claimants, and out of control legal costs that end up being paid for by all consumers through higher insurance premiums.”

According to the ABI, for every £1 motor insurers pay out in compensation, an extra 87 pence is paid in legal costs.

The Association also wants to see referral fees abolished and is urging the Government to implement an outright ban.

 

News posted:



Related stories to ABI response to “no win, no fee” reforms: