‘Compensation culture’ in UK needs reform, ABI says

The ‘compensation culture’ in the UK has gotten out of control and is in dire need of reform, according to a new report by the Association of British Insurers.

With a new survey recently revealing that more than three out of every four people in the UK has been on the receiving end of an unsolicited text or email from a claims management company, the ABI says that it’s become abundantly clear that the UK compensation culture needs to be reined in and regulated in order to prevent the proliferation of spurious personal injury claims from car accidents. The Ministry of Justice has been working steadily on investigating the sending of these unsolicited texts to prospective claimants, but as the MoJ works, the ABI says that claims management companies are working overtime to secure an increasing number of claimants, with special emphasis being found in searching out people interested in making whiplash injury claims.

The survey results support a crackdown on those claims management companies that leave no stone unturned in their quest to find more litigious individuals looking to make personal injury compensation claims. Motor and liability head for the ABI, James Dalton, called unsolicited texts and emails from CMCs symptomatic of the dysfunction that has grasped the legal system in the UK, encouraging exaggerated, spurious, and even wholly fabricated personal injury claims.

The tragic outcome of this increased claims activity is that insurers cannot keep up with the increased costs they face from defending a tidal wave of new claims. This means that insurers need to pass on their increased operating costs to their honest customers by hiking premium prices.

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