ABI calls for compensation culture reform
by Richard Kilner
Story link: ABI calls for compensation culture reform
The Association of British Insurers (ABI) have found that three in four people have received an unsolicited call or text from a claims management company offering claims compensation services.
The ABI’s survey, which involved 2,600 respondents, discovered that 78% had been contacted by a Claims Management Company (CMC), with an even higher 82% of Londoners contacted.
However, the vast majority (92%) reported that the unsolicited call was not relevant to them and a strong majority (three in four) supported the idea of a crackdown on CMCs to reduce the widespread nature of fraudulent whiplash claims.
ABI Head of Motor and Liability James Dalton described the unsolicited calls as a symptom of the UK’s dysfunctional compensation system which encourages fictional, exaggerated or frivolous claims.
Dalton went on to say that the system’s losers were honest policyholders who suffered higher insurance premiums because of the actions of the dishonest.