The ABI has called for greater use of rehabilitation schemes for victims of workplace accidents to stem the rising cost of employers' liability insurance.
New ABI research has found that the cost of compensation paid through employers' liability insurance could be cut by 40% through the use of such schemes.
The ABI claimed that slashing compensation would tackle a key factor behind the rising cost of employers' liability insurance.
Measures suggested by the ABI included ensuring employees injured at work have access to medical help to speed their return to employment, which may involve using a case manager to handle their care.
ABI head of general insurance John Parker said: "Employers need to be more active in getting staff back into work, if necessary even giving them a different role.
"Until recently we didn't rehabilitate many people at all in the UK. We've come a reasonable distance from that and we now rehabilitate thousands, but this needs to become tens of thousands."
The ABI estimated that accidents and illness at work cause 27,000 people every year to permanently leave employment, while about 14.5 million working days are lost annually due to work related ill health.
