Insurers' incompetence is wasting millions of pounds in unnecessary litigation every year. That's according to JTW Reinsurance Consultants.
JTW director Stephen Hartigan claimed insurers' failure to observe due diligence before they enter into contracts is fuelling litigation.
Hartigan has called for a step-by-step approach to contract negotiations.
Hartigan said: "The costs to insurance professionals of not taking such a due diligence approach are high - not just in terms of the enormous sums involved but also the drain on resources in terms of time.
"And there's the added risk that an insurance company will be forced to close its doors to new business as it goes to the wall following litigation over an ill-thought out contract."
