Liability insurance reports miss mark

The Office of Fair Trading's (OFT) and the Department for Work and Pensions' (DWP) reports on liability insurance have missed the mark and the construction industry wants to see firmer action taken quickly.

Rosemary Beales, director of the Civil Engineering Contractors Association, said: "While we welcome both reports, it is regrettable that the government did not act on the industry's concerns earlier - particularly as it now concedes the problem is complex and not amenable to any quick fixes.

"We look to the government to take early and positive action to ensure the insurance industry improves its service in this area and rewards contractors with proven health and safety records," she said.

Beales added: "Telling businesses to shop around when the market is so limited is not enough and the report promised for the autumn must contain more positive and concrete proposals to assist our industry."

The government will report in the autumn on progress made and any further steps it plans to take, so now is the time for the industry to lobby the government to ensure the next review comes closer to meeting its needs.

The Association of Consulting Engineers (ACE) welcomed the increased focus on risk management, but believes the report is a missed opportunity as it failed to tackle project insurance or suggest a joined-up approach.

ACE communications director Andy Walker said: "The ACE will be highlighting these omissions to the OFT and will be raising them more widely in the industry and with the government over the months ahead."

The Federation of Master Builders said more work will be needed to make the case on insurance market regulation to ensure that this type of crisis does not happen again.