Moody's: Axa's referral fee stance could benefit the sector
Axa’s recent decision to no longer accept personal injury referral fees could benefit the sector as a whole according to credit ratings firm Moody’s.
A report from the company advised that: “The incremental legal fees paid by insurers as a result of this process (known as “claims farming”) more than outweigh the referral-fee income that insurers receive when they refer claims to lawyers.
“Therefore, any reduction in the use of claims farming is credit positive for the sector. Axa UK’s announcement builds on the reforms announced last year in the Jackson review and the increasing political awareness of claims farming and its impact on
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@insuranceage.co.uk.
You are currently unable to print this content. Please contact info@insuranceage.co.uk to find out more.
You are currently unable to copy this content. Please contact info@insuranceage.co.uk to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@insuranceage.co.uk
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@insuranceage.co.uk
Most read
- Markerstudy gets CMA greenlight to complete £1.2bn Atlanta deal
- FCA warns insurers, again, on undervaluing total loss motor claims
- Ajay Mistry launches insurance broker