Budget 2016: BIBA Manifesto success as FCA takes responsibility for the regulation of Claims Management Companies (CMCs)
16th March 2016
In its 2016 Manifesto #Fairnessforall BIBA, despairing at the tactics of some CMCs, called for a level playing field in terms of their regulation and for the insurance industry regulator the Financial Conduct Authority to be their regulating body.
Graeme Trudgill, BIBA Executive Director said; “We are delighted with the Chancellor’s decision to bring in a new tougher regime for CMCs and that the FCA will take responsibility for their regulation. For too long some rogue companies have been able to hassle customers, possibly generating fraudulent claims that ultimately are paid for by innocent customers. This is a wise move by Government and one that will be welcomed by the insurance industry and consumers alike.”
It is estimated that fraudulent whiplash claims add 20% onto motor premiums and the absence of sufficient, effective regulation of CMCs has fuelled exaggerated claims. Last year’s Insurance Fraud Task Force recommended a coherent regulatory strategy to clamp down nuisance calls and texts to reduce the number of honest customers being coerced into making spurious claims.
Trudgill concluded; “This decision is a giant step forward in reducing fraud and creating a fair approach to regulation and we look forward to seeing the publication of the detailed plans.”
Notes to editors
- For further information please contact:BIBA press office:
Pam Quinn, Communications Manager
020 7397 0223
- 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 having merged with the Institute of Insurance Brokers (IIB) in November 2011.
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 78% 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 access insurance protection through its Find a Broker service, both online and via the telephone.
BIBA is the voice of the sector advising members, the regulators, consumer bodies and other stakeholders on key insurance issues.