Public sector insurer Zurich Municipal is set to publish new research revealing the impact of conditional fee agreements (CFAs) on local authorities.

The research, in conjunction with the Local Government Association (LGA), has examined the impact of the so-called compensation culture on local authorities.

It is expected to show that the majority of councils feel there is a problem, but that awareness of the issue needs to be improved.

Speaking to Insurance Times, a Zurich Municipal spokeswoman conceded that despite The Accident Group's (TAG) demise, no-win, no-fee claims were set to stay. But she said Zurich Municipal would continue to take a strong line in defending claims where legal liability was in dispute.

She said: "While it has been reported that local authorities should not defend difficult claims, our position has not changed. We urge our customers to move swiftly to admit liability where there is no defence.

"Where liability is clear, there is no point defending the indefensible; in CFA cases this just hands excessive success fees to the lawyers.

"We continue to take a very strong line in defending claims where liability is in question."