The Association of British Insurers (ABI) is calling for a fundamental long-term reform of workplace compensation in the UK.
ABI head of General Insurance said John Parker said: "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.
"In the short-term we are looking at how firms can best access employers' liability insurance, as it is getting increasingly difficult for insurers to provide cover that many firms can afford. In the long-term, we need a fundamental reform of workplace compensation in the UK. Unless we now consider how society's increasing expectations can be paid for the current system will break down.
"Reform needs to involve all the stakeholders, including Government, the TUC, defendants, claimants, lawyers and employer groups."
The ABI's call for reform coincides with an ABI conference held today to consider making employers' liability insurance more available.
