It has been recently reported that car insurers have taken a hit due to the high amounts of personal injury claims (PI). Well known insurance companies have experienced a fall in there share profits this week. This is due to an increasing number of personal injury claims received.
The Ban on referral fees that was introduced by the government has had a negative effect on insurance companies which was initially introduced to end the compensation culture.
Despite insurance companies facing profit falls they have welcomed and support the measures that are being taken in order to minimize the compensation and PI claims culture, and to have control over the amount of claims in Britain.
However the government is hoping that these measures taken to ban the referral fees will evidently help put a stop to the rising fraudulent claims which is a key factor to the insurance companies fall in profits.
