Reforms to the civil law on damages could see insurers paying out millions extra in claims, insurers and lawyers have warned.
The government paper, published last week, proposes changes to benefits and care packages, including the extension of fatal accident awards for bereavement and dependency.
Kieron West, a partner at Kennedys, said: "While this will be at no cost to the Exchequer, someone will have to pay for the proposed changes.
“While this will be at no cost to the Exchequer, someone will have to pay for the proposed changes
Kieron West, a partner at Kennedys
"Therefore we can expect another hike in premiums for all types of liability insurance."
Steve Thomas, UK technical claims manager at Zurich, said reform of the claims process was needed.
"If the government wants to recoup more in benefits and care, it must first acknowledge the need for improved processes."
