Insurers to meet lawyers to find common ground on compensation reform

The ABI this week attempted to gather support for its controversial proposals to reform the compensation process.

Last month, the ABI received stinging criticism from claimant lawyers, the Law Society and the TUC over concerns the plans would omit lawyers from the claims process.

The criticisms threatened to scupper the proposals which, as the ABI admitted, would need wide-spread support if the government is to act on them.

Justin Jacobs, ABI head of liability, motor and risk pricing, is due to meet Association of Personal Injury Lawyers (Apil) chief executive Denise Kitchener this week in a bid to find some common ground on compensation reform.

The ABI spokesman said: "Our proposals are not an excuse for bashing lawyers they are for bashing the system."

An Apil spokeswoman said the body would not discuss whether any agreement could be reached with the ABI in advance of the meeting.

MPs told of uncertainty in settlements
Insurance industry leaders warned of a period of uncertainty in personal injury settlements unless ministers revise new legislation to curb excessive claims, writes Daniel Bentley, parliamentary correspondent.

ABI director of general insurance Nick Starling told MPs on the Constitutional Affairs Committee, this week that the Compensation Bill should be used to reform the compensation process.

He urged the government to incorporate the ABI's proposal for a tariff system of standard compensation awards for different levels of injury.

Dominic Clayden, director of technical claims at Norwich Union, set out insurers' "significant reservations" with the Compensation Bill currently before Parliament.

Clayden said: "We are concerned there will be a period of uncertainty while the courts work out its impact."