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Daily Insurance Industry News
Sunday 19th of August 2018
March 15, 2011

Groupama calls for referral fee abolition

by Richard Kilner

Story link: Groupama calls for referral fee abolition

Groupama Insurances has stated its support for the complete abolition of claims referral fees for personal injury claims following the report from the House of Commons Transport Committee.

The firm also called for the early implementation of Lord Justice Jackson’s recommendations intended to combat soaring legal fees.

Head of Technical Claims at Groupama Insurances Steve Caffrey stated that it was clear that referral fees were the primary cause of rising civil litigation fees which has, in turn, led to rising motor premiums for everyone.

Caffrey predicted that axing referral fees would make a clear difference and help stave off claims inflation whilst improving motor premium affordability.

He added that many claims were so obviously false they would be unlikely to have been made were it not for referral farmers.

The report from the House of Commons Transport Committee called for a dedicated police unit to tackle motor insurance fraud, to be funded by the insurance industry.

The Committee’s report also slammed the so-called merry-go-round of referral fees.

 

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