BIBA delighted at Government acceptance of the Insurance Fraud Taskforce recommendations

26th May 2016

The British Insurance Brokers’ Association (BIBA) along with other industry bodies and stakeholders was an active member of the Insurance Fraud Taskforce whose recommendations were announced at the parliamentary launch of our 2016 manifesto. 

A key call for action in the manifesto was for Government to implement the recommendations of the taskforce, therefore we welcome the the confirmation made public today that Government is accepting all of the recommendations.  We now look forward to receiving details of the legacy vehicle that will be put in place to make sure that they are all actively pursued.

The insurance industry is all too aware of the adverse effects that the current prevalence of insurance fraud has; calculated in monetary terms to add £50 to the annual insurance bill of every UK policyholder.  Alongside others in the industry, BIBA is committed to continuing our concerted efforts to tackle this serious problem and we will do all that we can to support those tasked with implementing the recommendations.

The key recommendations included:

• Government to review ways in which fraudulent late claims can be discouraged through changes to court costs and evidence rules such as;
• directing older claims to the small claims process  not the fast track process,
• reducing recoverable costs by 50% if an injury claim is notified late, and
• introducing a damages award range for soft tissue injuries.
• Demanding that the Solicitor’s’ Regulation Authority (SRA) be tougher on fraud by working with the Claims Management Companies’ (CMC) regulator to properly and strongly enforce referral fee bans. In addition, to ensure that organisations not currently regulated are brought into the regime.
• The Taskforce also calls on Government to develop and deliver a coherent regulatory strategy to clamp down nuisance calls and texts to reduce the number of honest customers being coerced into making spurious claims.

Graeme Trudgill, BIBA Executive Director said; “Fraud has affected the industry and its customers for too long and this year we are really seeing a concerted effort to tackle this scourge. As well as implementing the recommendations that resulted from the hard work of the Insurance Fraud Taskforce, the changes announced earlier this year to the regulation of claims management companies will really make a dent in this problem creating fairer outcomes for customers and insurers alike.”

-ENDS-

Notes to editors

1. For further information please contact:

BIBA press office:

Pam Quinn, Communications Manager

020 7397 0223

quinnp@biba.org.uk

2. About the British Insurance Brokers’ Association

The British Insurance Brokers’ Association (BIBA) is the UK’s leading general insurance intermediary organisation representing the interests of insurance brokers, intermediaries and their customers.

BIBA membership includes just under 2,000 regulated firms.

General insurance brokers contribute 1% of GDP to the UK economy and BIBA brokers employ more than 100,000 staff. 54% of all general insurance is sold by an insurance broker and they arrange 79% of all commercial insurance business.

Insurance brokers put the client’s interests first, providing advice, access to suitable insurance protection and risk management.

BIBA helps more than 250,000 people a year to Find-A-Broker, both online and via the telephone.

BIBA is the voice of the industry advising members, the regulators, consumer bodies and other stakeholders on key insurance issues.