Crack down on insurance referral fees faces stiff oppositon

Damian Wilson


The government has announced that it intends to crack down the practice of referral fees being paid to insurance companies but it's unlikely that this will have any effect on either stopping this from happening or on reducing insurance premiums.

At the moment, what happens is that lawyers pay insurance companies for the details of those who are making claims from them and call it a "referral". As that fee can be anything up to £1,000 you can see that this is big business.