I believe this is long overdue and met by the industry with positive cheers. Daniel Schreiber from Lemonade often talks about some people feeling it's generally acceptable to defraud your insurance provider - its not, it never has been, and measures like this are a good step.
What we must ensure now is that some don't continue to find weak points in the system to exploit, e.g. travel insurance as mentioned earlier this week. Time to stamp this out period and change attitudes and behaviours.
The aim of the regulatory change in the claims management sector is to better protect consumers from “nuisance calls and the encouragement of fraudulent claims”.
Senior executives at claims management companies will also be drawn into the firing line, with the bill aimed at ensuring they are held “personally accountable” for the actions of their businesses.
The crackdown is in response to the longstanding problem of fraudulent or exaggerated claims for injuries such as whiplash. Insurers claim these inflate all policyholders' premiums.