Insurance companies are to be judged on their claims handling capabilities by trade association AIRMIC.

The association is to compile a league table of UK insurance companies based on how they deal with claims. The list will rate those companies that pay 100% of claims against those that don't.

An industry source said the aim of the project was to highlight the importance of transparency. "It is a symptom of the way the world is changing and the pressures that exist for transparency and for customer friendly practices."

AIRMIC intends to produce the table next year.