Growing compensation culture highlighted by insurers

17th Oct 2016

In a recent article, the Association of British Insurers (ABI) highlights the growing compensation culture in the UK, urging the Government to introduce reforms to protect against motor insurance fraud, as introduced by former chancellor George Osborne in his 2015 Autumn Statement.

James Dalton, Director of General Insurance Policy at the ABI, said: “The UK has one of the most abused [civil justice] systems in Europe and the reforms [to the civil justice system] would tackle the excesses of the compensation culture”. Significant increases in motor premiums over the last year have been attributed in part to the rising cost of personal injury claims. Dalton noted that claims management companies are recruiting motorists to file claims through telephone calls and text messages, and “encouraging them to make fraudulent and exaggerated claims through claimant firms.”

A 2015 public opinion survey conducted by BritainThinks found that 77% of those surveyed believe there is a new breed of ‘ambulance chasing lawyers’ that are out for all they can get.

Dalton asserts that each day the Government waits to tackle the problem costs “honest motorists across the UK nearly £3 million”.