The ABI has said it is disappointed with the government for failing to "come forward with clear-cut solutions" for the employers' liability (EL) crisis.
In response to reports by the Office of Fair Trading (OFT) and the Department for Work and Pensions (DWP), the ABI said it has now commissioned research into funding claims resulting from 'long-tail' occupational diseases.
ABI director general Mary Francis said: "There will inevitably be some disappointment that the government hasn't yet come forward with clear-cut solutions. But it is now important for everyone with an interest in this subject to contribute constructively to the debate. The momentum for fundamental reform must be maintained."
The ABI renewed its call for long-term fundamental reform of the EL market to create a "sustainable legal framework and moderate premium levels".
It said reform was necessary to provide greater certainty about claims costs, to reduce legal costs and to help businesses with access to the market for liability insurance.
Francis added: "These reports recognise economic reality. Insurers' costs have risen steeply and prices had to follow. The industry is doing all it can to help customers manage the effects, but the costs of the compensation culture - particularly legal costs - must be tackled at source.
"The government needs to consider a new system for funding claims for diseases like asbestosis, which can take a tragically long time to emerge. These claims place too heavy a burden on the UK's system of compulsory insurance for workplace compensation, and need to be funded and managed separately."
