Claims management companies, rehabilitation and litigation funding will be tackled by a new Department for Constitutional Affairs' action group.

The remit and structure of the group was hammered out at its first meeting last week, attended by insurance industry representatives, senior lawyers and ministers.

According to sources, two sub-committees have been formed. One will look at risk management, and advertising and cold calling. A second will look at rehabilitation, improving the litigation system, claims management companies, litigation funding, and alternative dispute resolution.

' The Department for Work and Pensions' rehabilitation working group has missed its end of February deadline for producing a report on easier access to rehabilitation.

A DWP spokeswoman said the report required further contributions.