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The Compensation Fund would be at risk if claims had deliberately been "under-settled" to generate cashflow. This would not be negligence but dishonesty. The Insurers would therefore not pay out, or in any way be liable.
That would then leave the Compensation Fund as the only source of money to pay such claims.
It would almost certainly be worthwhile for a Claimant firm to have a go on these lines, and I cannot see any judge deciding that, if the insurers don't pay, the Compensation Fund is liable.