By: 5 November 2013

The Insurance Fraud Bureau (IFB) has outlined a three-point plan to tackle what it describes as 'rogue' Claims Management Companies (CMCs) involved in organised insurance fraud.


Speaking at a Westminster Legal Policy Forum event exploring the future of claims management regulation today, the director of the IFB, Ben Fletcher, set out the organisations recommendations.


The IFB proposes greater onus on front end checks for CMCs to prevent unscrupulous businesses being authorised to trade in the first place; CMCs themselves proactively sharing intelligence with the IFB about suspected fraudulent behaviour; and making disclosure of the referral source within the claim notification form a mandatory requirement.


Fletcher said that some CMCs have been set up by criminal gangs to mask their fraudulent activities and needed to be flushed out. CMCs have long been common enablers of ‘crash for cash’ fraud investigated by the IFB, with 53% of live police Operations assisted by the bureau focusing on CMCs.


"Whilst many CMCs are genuine, the measures we are proposing will help us identify [rogue ones], prevent them from posing a severe financial risk to our industry, investigate them and bring fraudsters to justice,” said Fletcher.