ABI demands clean up of compensation system

The plea came in response to the government's reaction to the Transport Select Committee's report on the cost of motor insurance.

Otto Thoresen, the ABI's director general, said: "Insurers are committed to keeping motor insurance competitively priced but we urgently need reform of our compensation system if motor premiums are to come down.

"Rising claims costs from personal injury claims, excessive legal costs, insurance fraud and uninsured driving, coupled with lower investment returns in