Daily Insurance Industry News
 
 
Daily Insurance Industry News
Tuesday 24th of April 2018
September 9, 2011

ABI welcomes referral fees ban

by Richard Kilner

Story link: ABI welcomes referral fees ban

The Association of British Insurers (ABI) has welcomed the decision by the Ministry of Justice to ban referral fees relating to personal injury claims.

ABI Director General Otto Thoresen has said that the organisation is very pleased that the campaign by the insurance sector for such a measure has been heard and acted upon.

Thoresen added that the referral fees added no value and encouraged claims of a spurious and exaggerated nature.

However, he warned that the ban must be watertight and comprehensive, describing the move as the first step in reforming a dysfunctional compensation system.

Thoresen called for further action, including the reduction in legal costs and the tackling of whiplash, to further mend the system.

The Government’s announcement also elicited the support of AXA, although the insurer did describe the fees as the tip of the iceberg of inflating premiums.

 

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