Claims farming clampdown needed to cut motor costs

The insurance industry must tackle the ongoing rise in claims farming in order to reduce overall motor claims costs, according to a recent report issued by Defaqto.

At a crossroads, motor insurance report August 2010 said that there was a major issue with insurers controlling their claims costs, pointing out that both intermediaries and insurers were passing non-fault claims to accident management companies.

Report author Mike Powell, insight analyst, general insurance, at Defaqto, said: "One of the reasons why this happens, from an insurer point of view, is that the service provided is probably better than their own claims service. If this scenario is