The Association of British Insurers (ABI) has declared that it is time to put the brakes on the legal costs “gravy train” that is costing UK consumers £2.7 million every day.
Calling for a “root and branch” reform of Britain’s civil litigation system and the high legal costs connected to personal injury claims, the Association highlights that:
Every day UK consumers are paying the legal profession £2.7 million through their motor insurance premiums.
An estimated 10% of every motor premium goes to the lawyers – this equates to an extra £41 a year on the cost of every motor insurance policy.
For every £1 paid in compensation to motor accident victims, an additional 87 pence is paid out in legal costs.
The Association’s director of general insurance and health, Nick Starling, comments: “Often encouraged by claims management firms, many people believe that there is a compensation culture to exploit.”
He adds: “Our current system is failing not only many genuine claimants, who often have to wait too long to get the compensation they need, but all consumers who end up paying for it through higher insurance premiums.”
The ABI is therefore supporting the implementation of all Lord Justice Jackson’s recommendations, in pursuit of “faster, fairer, more cost-effective compensation and care to those who need it”.