PM to challenge industry to reduce cost of motor premiums

David Cameron will host a summit with insurance industry representatives, consumer bodies and business groups in a bid to bring down the cost of insurance premiums and tackle the country's growing compensation culture.

At the meeting it is expected that the government will set out a series of measures that it is taking to address the compensation culture, reduce legal costs and cut health and safety red tape.

The Prime Minister has in effect challenged the insurance industry to work to actively bring down the cost of motor premiums in return for government action on whiplash claims.

Among the measures expected to be put forward, the government will propose to reduce whiplash claims by making it harder to claim