Responsible attitudes to risk must be the start of wide ranging reform of the compensation system, the Association of British Insurers (ABI) has said.
The call by the House of Commons Constitutional Affairs Committee for action to tackle the growth in risk aversion should be the starting point for wide-ranging reform of personal injury compensation, the industry body believes.
We back the committee’s call for action to address the growth of risk aversion. Insurers play a key role in promoting responsible risk management – which is vital for society. And we support the committee’s call for statutory regulation of claims management companies, to ensure genuine claimants get a better service, says Nick Starling, the ABI’s director of general insurance.
This should be a starting point for a wider program of reform. The current personal injury compensation system fails too many genuine claimants. It is too slow, costly, and undervalues rehabilitation. This why wide-ranging reform is needed. The ABI has put forward its blueprint for reform, and we urge all stakeholders to back our call to put genuine claimants first, Mr Starling added.