AXA bans use of referral fees
AXA UK yesterday banned the practice of accepting referral fees from personal injury lawyers when its customers contacted them after an accident. AXA UK, the subsidiary of the French insurance giant, said it never sold customer details to claims firms but would stop accepting any fees from accident management firms and called for all UK insurers to stop the practice, which has led to soaring numbers and costs of claims for whiplash injuries following car accidents. It attributes about half of the increase in motor insurance premiums to personal injury claims despite road accidents falling and said encouraging motorists to claim was “unscrupulous”.