The Association of British Insurers (ABI) may be starting to unravel.... and all because of the Jackson reforms.

The problem they have is the nature of insurance has changed. It used to be that people paid a premium and then the insurer sat back and hoped that no one made a claim.

Now, with referral fees, claims can be valuable - to some.

DAS has already left the ABI and now Elite (an After the Event Insurer) looks set to follow. Clearly, ATE Insurers are going to suffer when the Jackson reforms come in and so their interests are diametrically opposed to the mainstream insurers who are very keen for the rules to be introduced.

The problem is, referral fees are also going to be looked at - and this will cause further friction within the membership. Some of the mainstream insurers now sell personal injury claims to the highest bidder and so actively go after people who have had accidents. This doesn't make them popular with insurers who haven't adopted this approach.

The cracks are appearing which I suspect is good news for the man in the street. The ABI has proved to be a powerful lobby-er whose persuasive powers have swayed the Government to dance to their tune.

Let's hope the Pied piper is silenced sometime soon.

Box Legal Limited: After the Event Insurance Providers
www.boxlegal.co.uk  | daniel@boxlegal.co.uk | 0870 766 9997