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A most unexpected announcement. There will be a fresh tranche of anti-lawyer/ compensation culture press on the back of this. As another has said the ABI view this as over compensating a few thousand injured people to the detriment of the poor consumer. Presumably they accept , therefore, that they have been undercompensating the most seriously injured for best part of two decades, the savings on which have gone directly to their bottom line.

The principles of compensatory damages are long established. There is no principle in law that says insurers must be able to make significant profits and pay large dividends.

Pi lawyers on both sides of the fence have been told to just get on with the latest legal reforms and that there was no need to worry , the sector was very adaptable and would thrive despite our misgivings.

Time for the insurers to also be adaptable and not just throw their toys from the pram. Change was due, maybe this was too big a step in one go. Ultimately insurers do need to be successful businesses- if there are no longer insurers in the market, no claims, no damages for clients and no lawyers on either side.