The Association of British Insurers (ABI) is stepping up its campaign to eliminate the “have a go” compensation culture.

It’s joining forces with leading retail groups and businesses to demand the UK Government implement the recommendations made by Justice Jackson in a recent review.

The review calls for measures to prevent lawyers from recovering success fees, the abolition of most after-the-event insurance premiums, and the introduction of a new damages-based system to replace “no win, no fee” agreements.

The ABI has also released a new report, “Tackling the Compensation Culture”, which states that insurers, manufacturers and public sector organisations agree these changes must be made to benefit all claimants.

It says that while the current system is too slow, expensive and fails too many people, it’s not “unstoppable or irreversible”.

ABI Director-General Otto Thoresen says the current civil litigation system is failing too many people, especially those it should be protecting.

“Compensators, such as insurers, retailers and local authorities, are committed to paying genuine claimants as quickly as possible,” he said. “But too often this happens despite the system, not because of it.

“People can get more money quicker by claiming directly from insurers, but ambulance-chasing lawyers can still manipulate the system.”

The ABI reports says the current system “encourages many people to believe there is a compensation culture they can exploit with exaggerated and fraudulent claims. The price for this is paid by millions of honest customers in higher insurance premiums, rising prices and increased costs to local authorities.”

The ABI says the UK should look at the examples of Ireland, Australia, Canada and Germany, which have all reformed their compensation systems.