Industry seeks compensation talks

Fresh talks about how to tackle workplace compensation claims are set to begin between insurers, unions and the government.

It is understood that possible solutions include legislative changes and a compensation pool.

Industry sources said the Association of British Insurers (ABI) had sensible and meaningful behind-the-scenes discussions with all interested parties before the Fairchild case became a hot media topic.

The Treasury, the Health & Safety Executive, the Confederation of British Industry and the unions were the main groups involved.

One insider said the talks ended when the glare of the television cameras prompted some parties to posture, using the industry as a scapegoat to politicise the issue.

Now the case has been heard, the ABI is believed to be attempting to reinstate talks as fast as possible.

However, one insider described the industry as "embattled, bruised and abused" following the attacks it received from other parties involved in the talks and would tread very carefully.

An insurance industry source said action must be taken if insurers are to continue underwriting long-tail lines such as employers' liability.

ABI general insurance head John Parker said the association had felt for some time that there were a lot of strains on workplace compensation that needed to be talked about.

He denied the ABI was seeking formal discussions, but said there was acknowledgment within the government that talks were needed.