A Financial Conduct Authority letter to claims management company CEOs could foreshadow hefty enforcement action according to Insurance Post.
In an article that highlights how CMCs have demonstrated a poor attitude to regulatory obligations, BLM's head of fraud, Sarah Hill commented on the findings that show how CMCs may seek to exploit claimants and said, "This is a welcome step taken by the FCA as part of their supervision strategy for CMCs. The connection between claims farming and insurance fraud has rapidly accelerated as CMCs venture into new areas to generate business. We have witnessed first-hand the harm to consumers who have been misled into making claims for compensation and the consequences that ensue when things go horribly wrong. Regulation and education are key to protecting the vulnerable consumer."
Click here to read the full article on the Insurance Post website.