The Department of Environment, Food and Rural Affairs has launched a consultation on whether to amend the 1971 Animals Act in line with a Private Member's Bill brought forward by Preseli Pembrokeshire MP, Stephen Crabb, last year.
The proposed amendment to the Act aims to ensure that responsible animal owners cannot be unfairly forced to pay compensation, where they have taken all reasonable steps to prevent accidents.
Under current law, owners of animals such as horses and cattle can face huge compensation claims, even when it is accepted that an accident involving one of their animals was not their fault.
Commenting Stephen Crabb MP said:
"Hopefully with new clarity in the law, which removes the threat of strict liability for careful animal owners, insurance premiums will start to come down."
And he added, "Not only are rural businesses placed at risk by the huge increase in premiums since the House of Lords judgement, but the millions of people who enjoy horseriding face extra costs as a result. Many stables have already closed and many more are threatened."
Stephen started campaigning on this issue after learning about the case of a constituent near who runs a small riding school near Fishguard who had seen her insurance rise from £858 in 2001 to more than £7,000 five years later.