Norwich Union's (NU) statement that rising personal injury costs has forced the insurer to raise motor premiums by 16% is a "kneejerk reaction".
According to legal firm Russell Jones and Walker managing director Neil Kinsella, the country's biggest motor insurer should "engage with lawyers and the Department of Constitutional Affairs (DCA) on its proposals to make the claims process less adversarial".
He said: "We have tried to engage NU for sometime on this issue. I'm not sure if this decision is to try and re-adjust the market after the success of the 'Quote me happy' campaign.
"But what is interesting is whether the figures they published today on costs includes the revenue NU gets from lawyers fees."
NU said today that it had been forced to increase premiums due to the rise in claims costs over the past two years, compared to static insurance rates.
It also said that riskier customers such as young male drivers will see premiums rise by 40%.
An NU spokesman said that other motor insurers would follow its lead and raise premiums.
Kinsella however said the government was pushing for transparency in the claims process.
"The government wants transparency so that NU customers and everyone else, gets the right legal advice and the best processes.
"It's time for everyone to get behind the DCA proposals," he added.
