Insurance Brokers urged to join A2J whiplash campaign

Press Release : 1 September 2017

UK insurance brokers are responsible for £325m of all claims management company turnover during the last ten years, according to insurance industry figures analysed by Access to Justice (A2J).

A2J spokesperson Andrew Twambley said according to Aviva (i), 13% of all personal injury claims are referred to CMCs by brokers, equating to £325m out of a total of £2.8bn.

He said that the vast majority of referrals, 75%, come from insurance companies, but added: “Brokers share responsibility with insurers for helping to create the claims farming industry.”

“We need the industry’s (insurers and brokers) help to improve the claims process, without the need for legislation. Asking the government to step in with yet more new law risks unintended consequences.”

Mr Twambley said that government plans to reform personal injury claims will “see claims farmers and claims management companies rubbing their hands in glee, as it is likely these businesses will step into the vacuum left by legal professionals exiting the market if the reforms become law.”

Mr Twambley said: “We call on BIBA, the trade association for insurance brokers, to support our Alternative Claims Framework (ACF), which shares similar aims to BIBA, such as quickly implementing the recommendations of both the Insurance Fraud Taskforce report and the Brady report.”

Mr Twambley also noted that BIBA supported A2J’s recommendation that the claims notification period be reduced to12 months.

“We would welcome support for our alternative approach from the UK’s broking sector. Under the current government proposals, up to 600,000 people will be denied access to justice every year, and nobody believes that insurers will hand back £35 in savings through lower premiums.”

“The insurance industry created the claims farming problem, and the insurance industry should take responsibility for putting it right – we urge brokers to join our campaign to make sure customers’ historic rights of redress are protected,” he said.

(i)  Sources: The 10th Anniversary Report of the Claims Management Regulator, and research conducted by Aviva for their Road to Reform report in 2014.

Infographic from Aviva’s ‘Road to Reform’ 2014.

About A2J

A2J represents the interests of the public and is supported by the broader personal injury (PI) sector. Its prime focus is to respond to the government’s proposed road traffic accident compensation reforms. A2J provides a cohesive voice to fight these proposed draconian measures; it will work with the government and other interested parties to create sensible, balanced alternatives which protect individuals’ rights, while addressing the government’s concerns, particularly in relation to claims fraud.

For more information please contact: Ben Welsh 07568 382040