The need to reform the compensation culture in the UK has been highlighted by a new survey that indicates how many Brits are encouraged to seek payments through unsolicited contact, according to a new report.
A survey commissioned by the Association of British Insurers (ABI) found that more than three in four people (78 per cent) have received spontaneous phone calls or texts from a claims management company trying to encourage them to claim compensation.
This is despite many of the individuals on the receiving end having no grounds to claim compensation.
The phone calls and texts typically asked the person if they had been involved in an accident or wrongly sold payment protection insurance.
Londoners receive an above average level of contact from claims management companies, with 82 per cent saying they had been spoken to.
"Unsolicited contact from claims management firms is a symptom of our dysfunctional compensation system, which encourages frivolous, exaggerated and even invented claims, especially for personal injury," said James Dalton, the ABI's head of motor and liability.
He added that it affects honest policyholders who are having their premiums pushed up by the high level of claims.