Industry agrees to reduce premiums if government action cuts legal costs

The government has made a commitment to tackle the country’s growing compensation culture, reduce legal costs and cut health and safety red tape in return for the insurance industry’s assurance that it will pass any resultant savings on to consumers.

At a high level summit of politicians, industry leaders and consumer groups, David Cameron pledged to help the insurance industry tackle the growing compensation culture, particularly around whiplash claims, and reduce legal costs.

One of the standout measures agreed was the government’s commitment to reduce the £1,200 fee that solicitors earn from small value personal injury claims.

In return, the industry agreed to pass on the savings to the customer. This has been a long-standing demand of