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As I have set out before, the policy premium is determined more by the return on investment than the claim costs.

We, have since 2010 been in a period of historically poor ROI and it is that which has caused premiums to increase while claims costs have reduced.

As has been pointed out claims numbers have been falling, s.57 has helped (although QOWCS has had perverse consequences) and defendants can now economically defend matters.

When Eire introduced a tariff system which did not have the checks and balances of lawyers the number of claims increased by c. 50%.

The proposals would have a devastating effect on the fee income to the MOJ, which to be replaced will lead to an increase in other fees and this will be passed on in increased costs.

The loss to the treasury in IPT, NI on salaries and corp tax will be immense and at a time when HMG will be looking for every spare 1/2p.

Finally do not lose sight of the politics. The govt has a slim majority and many constituency MP's Con Associations have few active members as such a few bolshie claimant lawyers can hold the Damoclean sword of deselection above the MPs head if he / she doesn't oppose the measures.