Lawyers are gearing up for a campaign to wind back tort reform in NSW. During this year’s state election they plan to highlight increasing evidence of insurer profitability. And two leading insurance specialists have warned change is needed.

Michael Gill and Crossley Gates of DLA Phillips Fox say many seriously injured people are being left inadequately compensated by the current liability regime. They are confident the campaign will resonate with a public concerned the reforms have overstepped the mark. And they warn recent profit statements from insurers could further alienate voters and candidates.

“The efforts of the leaders of the insurance industry to find a balance between fair compensation and affordable premiums will not be aided by the continuing softening market conditions,” they said in the DLA Phillips Fox annual insurance law review.

The campaign comes after a tough year for insurance lawyers. Mr Gill and Mr Gates say the relatively benign claims environment has reduced the amount of legal work from insurers and claimants. Some insurers are taking advantage of the environment and attempting to “squeeze” their lawyers.

“Lawyers and their firms, which have traditionally relied upon this source of work, are merging, disappearing or refocusing on greener pastures,” they said. “The terms of engagement are becoming unattractive for lawyers.”