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Budget: Govt to review claims management firms and cap fees

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Chancellor George Osborne has set out plans to conduct a major review of claims management companies and cap fees.

Giving his Budget speech today, Osborne said the Government will scrutinise the regulation of claims management companies.

Details of the review and the level of the proposed cap have not yet been published.

The plans were announced alongside an increase in insurance premium tax.

Osborne said: “We’ve taken action to make sure that consumers get a better deal from another important industry – insurance.

“The cost of premiums are down for families.

“And today we’re announcing a major review of the regulation of claims management companies and we’ll cap the charges they can apply to their customers.

“Britain’s insurance premium tax is well below tax rates in many other countries.

“I am therefore today raising insurance premium tax – which applies to only one fifth of all premiums – to 9.5 per cent, effective from this November.”

Greater scrutiny of CMCs is likely to be welcomed by advisers, who regularly complain of the strain spurious claims place on their businesses.

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Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. Con men beware for your sins will find you out

  2. Julian Stevens 8th July 2015 at 4:28 pm

    It’s a pity that the FCA shucked off onto the MoJ the task of regulating CMC’s, as this is just the sort of job that they’d tackle with relish. Out would come the hatchets, cudgels, sledgehammers, knuckledusters and hobnailed boots and they’d be right in there with nary a second thought. For once, I’d cheer them on.

  3. Recently I saw a bill from a firm that helped for the simple task of filling in FSCS form for his loss in Arch Cru The total they received for that simple task was £15,000. of £65,000 they received.

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