Allianz calls for market-wide solution to referral fees

Allianz Insurance chief executive Andrew Torrance has called for a “market-wide” solution to tackle referral fees.

The move comes after former justice secretary Jack Straw called referral fees “a racket.”

The Information Commission also confirmed today that it has launched an investigation into Straw’s claims that motor insurers who sell clients’ details to personal injury lawyers are breaking the law.

Torrance said: “This issue will only be effectively eradicated if there is a market-wide solution and I believe this is most likely to come via regulation or some other mandatory instrument.

“This regulation needs to be drawn broadly enough to prevent current payers of referral fees adjusting their business models to achieve the same effect as today via a different mechanism.”