Soaring liability premiums are forcing companies organising corporate team bonding activities to abandon risky sports.

As a result, abseiling and white water rafting may soon become victims of 'compensation culture' as liability rates for activity organisers soar.

But GAB Robins said that while potentially hazardous activities had seen rising premiums, they were partially attributable to the current hard liability market.

It said attributing the rise to a perceived 'compensation culture' alone was "too simple".

Government plans to introduce NHS charges on liability compensation payments from 1 April 2005, will also affect premiums.