Norwich Union (NU) is preparing a detailed briefing document for Labour MP Stephen Byers that will outline ways in which the compensation culture can be beaten.

Speaking to Insurance Times at the Labour Party Conference in Brighton, Byers confirmed that the insurer is preparing a document on the subject and he will be briefed on its contents.

Sources close to the project said that the document examines in great detail the supply chain of personal injury claims. "It looks at every aspect of claims and breaks them down into great detail. It also shows how each bit of legislation contributes and how that could be changed," the source said.

"It has taken the best part of a year to prepare and is due to be presented to Byers next month."

Byers was keen to point out that the document was not commissioned by him, but he was worried about the costs to society of spurious claims. Earlier this year, he expressed concerns that money was being taken away from schools and hospitals to pay for lawyers and claims managers.

Byers is already considering:

  • Scrapping no-win, no-fee deals where solicitors take up cases which previously would have been settled without going to law
  • Capping the costs paid to lawyers and accident management companies
  • More effective regulation of accident management groups
  • Getting insurers to develop new ways of resolving claims quickly without going through the legal process.