Insurance Age blog: Referral fees and the ABI
The Association of British Insurers (ABI) hasn’t been shy in demanding an end to the use of referral fees. It seems that every chance that presents itself, from the news that Jackson’s reforms would be implemented in full to any news regarding the cost of car insurance, Nick Starling, the ABI’s director of general insurance and health demands an end to the use of referral fees.
And that’s no bad thing. It would take an idiot or an accomplished liar to suggest with a straight face that the existence of referral fees in the claims process is a good thing. It patently isn’t. It adds costs and creates so many conflicts it puts the Millibands to shame.
But it’s not as simple as just getting rid of them and there are two main points I’d like to make here. First of all there are many brokers out there who are reliant on the income that referral fees provide.
Now I am not
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