Insurers see referral fee ban as important first step

The Association of British Insurers (ABI)and Axa have welcomed the government’s announcement that they will ban the selling on of personal injury details for referral fees.

Otto Thoresen, ABI's director general, said: "We are very pleased that the government has listened to the insurance industry's campaign for a ban on referral fees. They add no value and encourage spurious and exaggerated personal injury claims.

"It is important that the ban must be watertight and apply across the board. Banning referral fees is an important first step in tackling our dysfunctional compensation system, and needs to be accompanied by a reduction in legal costs and action to tackle