Axa renews attack on referral fees

Originally posted by 5corpio
Insurance firm Axa has renewed its call for government action to stop the upward spiral in car insurance costs.

In June, it became the only UK insurer so far to stop selling to lawyers details of its customers who have made insurance claims.
This system of "referral fees" was described by Labour MP Jack Straw as a "racket".

Axa said the government should cut the fees personal injury lawyers can charge under "no win, no fee" arrangements.
"Whilst we welcome signals that the government is minded to impose a market-wide ban on referral fees, they are a symptom - not the cause - of the increase in personal injury claims," argued Paul Evans, chief executive of Axa UK.

"We believe more radical steps are needed. Firstly, a