IFB welcomes review of regulation of claims management companies (CMCs)
08 July 2015
The Insurance Fraud Bureau (IFB) has welcomed today's Budget announcement that there is to be a 'fundamental review' of the regulation of claims management companies (CMCs). The review is to be led by the Chairman of the Chartered Trading Standard Institute Board, Carol Brady, which will report to HM Treasury and the Ministry of Justice in early 2016.
Ben Fletcher, Director of the IFB, said: “There are many genuine Claims Management Companies (CMCs) which provide a service for honest consumers and this must be preserved, however there is equally a need to recognise that corrupt CMCs are a significant factor in organised insurance fraud and work needs to be done to improve regulation.
"From the IFB’s perspective, the evidence is compelling as currently just under half of our live investigations feature a CMC somewhere in the scam and over the last 18 months we have received more than 400 intelligence reports where such a company has been at the heart of the problem. A major review of the regulation of this industry to improve transparency and to implement robust processes which will enable the detection of corrupt practices is absolutely welcomed.”