Norwich Union (NU) chief executive Patrick Snowball called on insurers and reinsurers to lobby the UK government for political reforms in order to prevent the creeping impact of the 'compensation culture'.
Speaking at a debate on compensation culture at the Monte Carlo Rendez-Vous, Snowball was joined in his call by Beachcroft Wansbroughs senior partner Lord Hunt of Wirral.
Snowball quoted research by NU, which found that 96% of people in the UK believed we were more likely to seek compensation than we were ten years ago as evidence that the problem was getting out of control.
Hunt warned insurers and reinsurers to exercise caution when settling cases early for commercial reasons. He said the industry should see defence costs in such cases as money well spent by serving to prohibit future spurious cases.
Also speaking at the debate, broadcaster John Humphrys described the emphasis placed on compensation in UK society as a “profound social change” that has occurred over the past 40 years.
He said the 'compensation culture' was the product of a shift in attitude away from the idea that risk is simply a part of life.
Humphrys described the sale of after-the-event insurance as “madness” and said the answer to the problem was the strict regulation of claims farmers.
