More transparency is needed in contracts between service providers and insurers, loss adjuster GAB Robins has warned.

GAB chief operating officer Benedict Burke made the statement after it emerged that loss adjuster Davies is suing insurer MMA after being dropped from its panel.

It is understood Davies is the first loss adjuster to sue an insurer over such a split.

The High Court writ relates to a contractual agreement on the termination notice period.

Davies had a 30-year relationship with MMA.

Burke said he did not know the specifics of Davies' case, but that the lack of clarity in such contracts often left both parties open to legal action.

"Clear wording is needed on key performance indicators, service level agreements, terms on contract, the value of the contract to the supplier and there need to be regular assessments," he said.

"If all these wordings were in place, there would be limited opportunity to argue there has been a breach."