Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the adequacy of consumer protections for motorists who are unknowingly diverted from their insurers to claims management companies following road traffic accidents; and whether she has had discussions with the Financial Conduct Authority on closing regulatory gaps that allow misleading advertising and lead-generation practices in the accident management sector.

The Government expects motorists to be treated fairly when making insurance claims. FCA rules require that insurer’s communications with consumers, including during the claims process, are clear, fair and not misleading. The process by which customers are referred outside their primary insurer—such as to accident management companies—is already subject to FCA regulation.

The FCA, working with other regulators, has taken coordinated action against misleading advertising and poor practices by some Claims Management Companies operating in this area. Treasury Ministers meet the FCA regularly to discuss issues across the full range of its responsibilities.