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Member, Beacon International Group, Ltd.
LONDON--The Assn. of British Insurers is calling on the U.K. government to reform the compensation system for workplace injuries and illnesses.
Fundamental long-term reform is needed, John Parker, head of the general insurance division of the ABI, said Friday before a conference discussing the mounting employers liability crisis.
Long-term reforms should include limiting legal fees in compensation cases and placing greater emphasis on good health and safety practices, the ABI said in a statement.
"The current system of workplace compensation is unsustainable. It is buckling under the strain of greater expectations about who should receive compensation and how much they should receive," Mr. Parker said in a statement. "This is why there has been a 100% increase in the cost of employers liability claims in the last five years."
In the short term, the ABI is exploring ways to provide employers liability coverage, "as it is getting increasingly difficult for insurers to provide cover that many firms can afford," Mr. Parker said.
Employers liability coverage is compulsory for U.K. employers.
The ABI met Friday with representatives of several industry groups, including the National Federation of Master Builders and the Engineering Employers' Federation as well as the government's Health and Safety Executive, to discuss the problem of rising employers liability rates.