While legislation of referral fees is welcome, a total ban is wrong

When a customer has been injured through no fault of their own, it is part of our duty of care to ensure they get high-quality legal representation. It is in their interests to go to a law firm that has been vetted and is being monitored by the insurer.

There’s a world of difference between this type of referral and the accident management firm or claims farmer that has other commercial interests at heart. I support the principle of legislation of referral fees, but it needs to make the distinction between the unscrupulous use of referrals and those that are intended to help the motorist. Otherwise any change in the law could have adverse, unintended consequences.

These are our insured customers and we need to look after their interests whether it is for car repair, hire car services or injury. The fact is referral fees are not the main cause of rising prices, and there’s a danger of throwing the baby out with the bath water.

Mike Brockman is chief executive of insurethebox