Lord Mendelsohn – 2016 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Lord Mendelsohn on 2016-05-23.

To ask Her Majesty’s Government what assessment they have made of the findings of the Insurance Fraud Taskforce that detected insurance fraud and undetected insurance fraud costs consumers up to £50 per year; and whether they plan to establish a unit (1) to track the return of those costs to the consumer, and (2) to monitor the performance of the insurance industry in tackling fraud and addressing the practices of claims management companies.

Lord O’Neill of Gatley

A Written Ministerial Statement was published on 26 May 2016 to announce that the Government accepts each of the recommendations addressed to it. We expect that all organisations tasked with taking forward recommendations do so with urgency. The Government will do what it can to assist and, in order to make sure that all of the recommendations are actively pursued, we will seek an update on progress later in the year.

The report highlighted the particular problem of fraud in relation to low value personal injury claims and the Government has established a programme of reforms in this area, particularly in respect of whiplash claims and regulation of claims management companies. We are pleased that the report’s recommendations reflect and support that reform programme.