Insurers in line for a £4.8bn windfall from referral fees - Insurance News Now – 9 June 2011
Post news editor Mairi MacDonald outlines this week's major general insurance stories including how motor insurers could pocket billions in extra income a year if a recommendation to retain referral fees is acted on.
John Spencer, a former chairman of the Motor Accident Solicitors Society, has estimated that insurers and brokers will receive up to £3.2bn in referral fee income and £1.6bn in ancillary services income in 2010 and 2011 alone.
In other news, Equity Red Star has made 27 staff redundant following an eight-week consultation period; Paladin Underwriting Agency has exited its specialist contractors' account 18 months after its inception; Talbot Underwriting, Cathedral and EBI have taken legal action against AEG Live, the promoters of Michael Jackson's This Is It tour. The dispute relates to whether Michael Jackson's death was accidental or if it was caused by deliberate prescription drug abuse; and online financial services marketing firm Media Ingenuity is in talks with insurers to support a push into the general insurance personal lines space.
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