“Brokers share responsibility with insurers for helping to create the claims farming industry.” This was Access to Justice (A2J) spokesperson Andrew Twambley’s statement as the ad hoc body called on insurance brokers to join its campaign on personal injury claims.
Based on its analysis of insurance industry figures, the lawyer lobby group pointed a finger at UK brokers for being “responsible for £325 million of all claims management company (CMC) turnover during the last 10 years.”
In a press release, A2J cited research which showed that 13% of all personal injury claims are referred by brokers, while 75% of referrals to CMCs are said to be from insurance firms.
“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 laws, risks unintended consequences,” stated Twambley.
He 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.”
According to Twambley, as many as 600,000 people every year will be “denied access to justice” under the current government proposals – adding that “nobody believes that insurers will hand back £35 in savings through lower premiums.”
Blaming the cover business, Twambley said: “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.”
Set up to coordinate action to protect access to justice for injured people who are not at fault, A2J is focussed on responding to the government’s proposed road traffic accident compensation reforms. According to the group, it seeks to create balanced alternatives.
“We would welcome support for our alternative approach from the UK’s broking sector,” said Twambley.
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