The introduction of a no-fault workers' compensation scheme would cost insurers and the government £1.5bn a year. That's according to research by consultants Greenstreet Berman.
The study concluded that a scheme - similar to the Australian model of allowing claimants unrestricted access to litigation - would push Britain's compensation bill from £5.99bn a year to £7.49bn.
Critics of the plan point to recent surges in the cost of employer's liability insurance, fuelled by soaring legal fees.
ABI head of general insurance John Parker said a no-fault system was not the answer to the problem. He said: "No-fault does not necessarily reduce legal costs and could lead to an increased level of legal costs as more claims are made and levels of awards are contested."
