Building referral fee costs hit industry for ‘tens of millions of pounds’ – Insurance News Now
Post senior reporter Amy Ellis outlines this week's major general insurance stories including claims that referral fee costs that have escalated over the last two years to the point where they are now costing the industry tens of millions of pounds a year.
The debate over loss adjusters turning to their supply chain to make up the shortfall as insurers drive down the price of traditional adjusting has once again be brought to the fore, with sources suggesting that at least £100m will have been added to claims in 2011 from referral fees.
In other news, a senior rating analyst has played down fears that other major European insurers could be on the end of downgrades in the wake of the European debt crisis; brokers are predicting XL will be the biggest player in the solicitors' professional indemnity market; and a campaign to secure a more cost-effective regulatory environment for thousands of brokers will form the basis of the merger between Biba and the IIB.
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