Analysis

Is it the end of the road for motor referral fees?

By 2025-08-08T07:00:00

Claims

The FCA has raised concerns that referral fees in the motor market can drive up the lifecycle and cost of claims – however, market participants are tight-lipped about next steps for this model

Referral fees – payments made to individuals or businesses for successfully referring a client or customer to another business or service provider – were famously dubbed “a huge racket” and the car insurance industry’s “dirty little secret” by former justice secretary Jack Straw back in 2011.

But, 14 years on, a veil of secrecy still surrounds referral fees in the motor market, with car insurers – and even the ABI – reluctant to discuss them.

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