The government, the banking industry and the insurance industry need to get tough and regulate the claims industry, said the Claims Standard Association (CSA).
It wants better regulation and higher levels of service standards in the claims sector.
The call came after the CSA reported on eight months of research into developing a common code of practice and standards.
The research concluded that policing and implementing self-regulation was currently an impossible task and would not be taken seriously without strict guidelines from the government, and the banking and insurance industries.
CSA chairman Nick Phillips said: "Banks and insurers ultimately fund and insure this industry so they should be a crucial component in the development and implementation of standards. It is the only way to achieve a common standard that is enforceable."
"We believe that by joining with the banking and insurance industries we can help the government in developing workable guidelines, which offer an enforceable code and standards that will ultimately provide protection to the consumer."
