Referral fee ban could be catastrophic for brokers
Industry experts have warned that brokers reliant on an income stream from referral fees could find the government’s ban disastrous for their business.
Most experts agreed that the devil would be in the detail on how the government would implement its announced intention to ban referral fees for personal injury claims.
David Haynes, underwriting manager at Arag was one person to welcome the decision.
"We think it was inevitable. They have attempted to strip out other costs relating to the whole process, while this has remained [almost] untouched and it was [always] going to be taken away or managed differently."
He did however raise concerns as
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 or view our subscription options here: https://subscriptions.insuranceage.co.uk/subscribe
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.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
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. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@insuranceage.co.uk
More on Broker
Q&A: Grove & Dean’s Michael Lawrence
Michael Lawrence, distribution and underwriting director at personal lines specialist Grove & Dean, spent 34 years at LV general insurance in its various guises before jumping the fence in 2024.
End of Year Review 2025: Create Insurance Solutions’ Mike Cranny
Mike Cranny, founder of Create Insurance Solutions, remains disappointed by consolidation that brings nothing beneficial for customers - and questions shiny new hires that claim to bring “a wealth of talent” to a new employer.
FCA warns of Essex broker clone
The Financial Conduct Authority has warned of a clone claiming to be Essex-based Ignite Insurance Brokers.
Premium Credit adds three more brokers on back of Close pull out
Premium Credit has struck deals with Riviera Insurance, Principal Insurance, and Bedford Insurance Group after Close Brothers decided to pivot away from personal lines to commercial.
End of Year Review 2025: Percayso’s Chris Traill
Chris Traill, account director at Percayso Inform, is happy the market is leaning harder into data-driven segmentation rather than just chasing the cheapest headline rate; but adds even with Consumer Duty, there are still examples of poor communication and product understanding.
End of Year Review 2025: Axa Retail’s Matt Field
Matt Field, intermediary director at Axa Retail, hails the insurer’s domestic violence proposition; keeps a keen eye on its NPS; and predicts new entrants to shake up the retail personal lines market, with a particular focus on data and technology.
MBP invests in cyber broker taking deal count to four in recent months
Peter Cullum-backed Minority Broker Partnerships has invested in London-based specialist cyber and technology insurance broker and digital platform, Cyber Cover.
British Model Flying Association flies high with Aon’s Sports Insure
Aon’s specialist offering Sports Insure has been appointed by the British Model Flying Association to provide its approximately 800 affiliated clubs and youth groups with risk management and insurance solutions.