Insurers pay 40p in legal fees for every £1 in compensation
Maggie Craig, acting director general of Association of British Insurers (ABI) has attacked Thompson’s boss Stephen Cavalier in a letter replying to his in the Guardian.
“It really is no surprise that this letter comes from a law firm which will be seeking to defend its income. It is time that law firms became more accountable to their customers.
“We want to see a new world where consumers can make an informed choice on which law firm they use based on quality and value for money, which is what happens in all other areas of the market.
Disproportionate
She wrote: “Legal costs are completely disproportionate and are paid for by everyone in society, whether it be British businesses and motorists having to pay higher insurance premiums or the NHS and local authorities having to divert money from frontline services to pay for the costs of lawyers.
“For every pound paid in compensation an extra 40p is paid in legal costs.”
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