The ABI has said that the Compensation Bill will only deliver full benefit if it is the first step in the reform of the UK's compensation system.
The ABI said it supports the proposal to regulate claims management companies and added that regulation should apply across the sector, particularly to those companies not currently within the scope of regulation of another professional regulatory body.
Nick Starling, the ABI's director of general insurance, said: “This Bill should mark the start of much-needed comprehensive reform of our compensation system. The current system fails genuine claimants: the claims process needs to be simplified and speeded up.
“Legal and other costs, which account for 40% of the cost of liability insurance claims, must be reduced. And we must improve access to rehabilitation to help injured and ill people recover as quickly as possible.
“The ABI will play our full part in this reform programme, and we will shortly be announcing further proposals that aim to put the claimants' needs first.”
