Legal expenses insurer Elite has resigned from the Association of British Insurers (ABI) with immediate effect.
The insurer says its decision was prompted by the ABI's response to the Jackson proposals, which it deems was not strong enough.
"Despite having at the heart of its mission the commitment ‘to shape and influence decisions made by the Government in order to benefit the industry collectively’ Elite believes that the ABI has not stepped up to the mark in their response to the proposed Jackson reforms and their resultant impact on the ATE [after the event] insurance industry," Elite said in a statement.
Elite pointed out that fellow legal expenses insurer DAS withdrew from the ABI last October, and added that "the talk in the market is that others will soon follow".
Elite CEO Jason Smart said: "The ABI has made it clear that their core members’ interests are paramount but as legal expenses insurers we do not matter, hence our withdrawal.”
An ABI spokesman declined to comment on individual companies, but said that the association's stance on the Jackson reforms was arrived at following a discussion with all members, including legal expenses insurers.
The ABI called for a full implementation of the Jackson reforms in February.
The announcement follows hot on the heels of yesterday's news that Elite has decided not to enter the professional indemnity insurance market because of a lack of what it deems to be essential changes to the Assigned Risks Pool.
Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
No comments yet