UK Government To Consider Involving Private Insurers In NHS Claims
Date: Wednesday, February 22nd, 2012

The Department of Health is set to examine ways in which to encourage the private sector to become more engaged in insuring the NHS, as the service is facing an ever growing number of clinical negligence claims.

Ministers will think of how competition to the NHS Litigation Authority might be boosted. At present, it is the main body that defends hospital trusts against negligence claims and can reach settlements over some of them.

The rising costs for clinical negligence compensation claims have become a serious problem for the NHS. Last year it was estimated that £15.7bn of its budget was allocated to dealing with compensation claims, which represents 15% of the total NHS annual budget. Figures show that since 2010 the number of negligence compensation claims has increased by 9%.

The government's decision to look for alternative ways to deal with negligence claims follows a report from insurance broker and risk adviser Marsh, which last year recommended more engagement from private insurers so that claims could be better managed. Although the report did not predict massive commercial participation, it recommended that insurers are advised on potential involvement.