Two brokers settle in referral fee and inadequate claims handling dispute

Royal Courts of Justice

Endsleigh has settled with Southern Rock in a legal dispute in which they were accused of pocketing referrals and inadequate claims handling.

Gibraltar-based insurer Southern Rock was seeking £15.5m from Endsleigh, according to the writ, but both parties have declined to reveal amounts of money involved in the final settlement.

The court dispute stems from when Endsleigh was the claims handler for Brightside between 2004 and 2008.

An Endsleigh spokesman said: “We have reached a mutually acceptable agreement, the terms of which remain completely confidential.

“We are pleased that reaching this compromise allows a line to be drawn under these legal proceedings.”

The revelations that Brightside was seeking cash over Endsleigh secretly pocketing referral fees was first revealed by Insurance Times.

Insurance Times also understands Endsleigh will meet parties for Markerstudy this week and the two parties could reach a solution to their dispute.

Markerstudy also accuses Endsleigh of being an inadequate outsourced claims handler.

An Endlseigh spokesman declined to give details of the proceedings.