The High Court's Chief Costs Judge's decision on the Claims Direct test after-the-event cases was a step in the right direction, the Forum of Insurance Lawyers (Foil) has said.
President Tim Wallis said clarity was emerging in the ATE market, but warned that the recent judgement was "not the end of the road".
He said Chief Costs Judge Hurst wrote in his judgement that there was a far greater problem in the guise of the ratio of costs to damages in simple claims.
"Master Hurst also noted, as did Lord Hoffman in Callery v Gray, that the Civil Justice Counsel initiative is ongoing to try to resolve the wider costs problems," Wallis said.
"Dialogue is the sensible way forward, if the political will can be found."
