The insurance industry has an "important part" to play in the drive to cut sickness benefit claims, according to the government.

The Department of Constitutional Affairs (DCA) is engaging with the ABI to improve employers' liability insurance to ensure businesses have incentives to provide safer workplaces.

A DCA spokesman said there was "work in progress".

He added: "We have a very broad across-the-piste programme looking at how to speed the process up.

"A lot of it is about looking at the process, how claims are analysed, how they are dealt with and assessed, about being valid or not valid."

The move comes as the government tries to reduce the number of people dependent on incapacity benefits.

Last month's welfare reform green paper said that insurers had already helped by lowering premiums for safer working environments.

These were a good incentive for employers to reduce risk in the workplace, it said.

FirstAssist chief executive Tim Ablett said large employers and their insurers needed to co-operate in instigating effective rehabilitation programmes to get people back to work quickly and efficiently.

He said: "This would lead to increased productivity and significant reduction in the drain on UK businesses."