Travel sickness CMC activity 'should be regulated by the FCA'

30 Oct 2018

Claims management companies who deal with travel sickness should be included in upcoming Financial Conduct Authority regulation of the sector, warn experts.

The FCA will begin regulating CMCs next year, but the scope of the draft regulation is limited to firms operating in personal injury and PPI, as well as other non-insurance sectors.

The Treasury said it will not include other areas of CMC activity because it does not wish to delay the regulation becoming enforced.

However, Sarah Hill, fraud partner of BLM said that gastric illness claims have skyrocketed over the past years, and should “absolutely” be included in FCA regulation.

“Over the last two and half years we have been working very closely with the travel industry particularly with the holiday travel sickness claims basically exploding due to claims management companies and referrers seeing business opportunities,” she said.

“We have undertaken quite a few investigations where it’s clear there is multiple layers going on. The CMC referring to the solicitors before that you got another couple of other layers of referral. In my experience, it’s the activity that has pushed for bad and fraudulent behaviour.”

Read the full Insurance POST article here.

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Disclaimer: This document does not present a complete or comprehensive statement of the law, nor does it constitute legal advice. It is intended only to highlight issues that may be of interest to customers of BLM. Specialist legal advice should always be sought in any particular case.

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Sarah Hill

Sarah Hill

Partner,
Birmingham


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