Straw slams CMC “parasites” and near criminal activity
Jack Straw MP has attacked claims management companies (CMCs) and credit hire firms as “parasites in the system” in his evidence to the Transport Select Committee’s investigation into the cost of motor insurance.
Sister title, Post, reported that Mr Straw said: "What I am clear about is that of a total of about £9bn of premium, £2bn is costs caused by who I think can accurately be described as a parasite in the system."
The MP warned that the stabilising of motor rates after recent large increases was not a reason for complacency as he criticised the role of CMCs.
"In terms of the variable cost, there is not much doubt that there is a statistical connection and correlation between the density of CMCs by
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