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Daily Insurance Industry News
Saturday 17th of November 2018
June 28, 2011

AXA bans referral fees

by Gill Montia

Story link: AXA bans referral fees

AXA bans referral fees

AXA has announced that it will no longer accept referral fees from personal injury lawyers, as it continues to call for whiplash injury reform.

The insurer has never sold customer details to personal injury lawyers or accident management companies, and with immediate effect will no longer accept fees from personal injury lawyers when it puts customers in contact with them, to pursue valid claims.

The company estimates that around 50% of the cash raised in recent motor insurance premium hikes is needed to cover the rise in bodily injury claims, and is particularly concern at the practice of motorists being encouraged to make claims several years after an accident.

The group’s UK chief executive officer, Paul Evans, comments: “As one of the leading insurance providers, we have decided that the only way to address the problem adequately is to lead by example.”

He adds: “Over the last few years we have seen an exponential rise in personal injury claims – especially soft tissue injuries – whilst evidence suggests road accidents are decreasing.”

 

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