The ABI will today defend its members against criticism of the soaring cost of liability cover.
The ABI's stance is in response to the Office of Fair Trading's examination of the cost of employers', public, product and professional liability insurance. Employers' liability insurance is also the subject of a separate review by the Department for Work and Pensions.
The ABI is expected to claim in its response that Britain's compensation culture has made it difficult for insurers to keep premiums low.
Its submission is also expected to argue that although the UK liability market is under strain, it remains competitive.
An ABI spokesman said: "In 2001, employers' liability claims exceeded gross earned premiums by £304m; for public and products liability this loss figure was £87m.
"Price rises in the liability sector in the past 18 months have been driven by lower investment returns, rising re-insurance costs in part due to the events of 11 September, legal changes, such as conditional fee arrangements that have led to the cost of personal injury claims rising by as much as 300% since 1996, and the emergence of new risks, such as an increase in claims for sexual and other abuse."
