Derby-based insurance broker, Franklands, is backing the former Home Secretary's call for the abolition of referral fees to ensure that consumers get a better deal with their car insurance.

Franklands were amongst a delegation of insurance brokers and industry experts who met with Jack Straw, the former Home Secretary and Labour MP for Blackburn, to discuss the growing problem of referral fees within the insurance industry.

The event, which took place at the Marriott Hotel in Leicester was organised by Brokerbility, a group of 35 leading independent insurance brokers, of which Franklands is a founder member.

Brokerbility, whose combined portfolio controls a gross written premium (GWP) in excess of £450m, shared its members' views on referral fees with Straw, who has publicly raised concerns about the soaring cost of motor insurance.

Currently referral fees are paid to some vehicle recovery and repair companies, medical professionals and even insurers and some insurance brokers by law firms for 'tip offs' about road accidents which might lead to personal injury claims work.

This has lead to the numbers of personal injury claims - many of them utterly spurious - going through the roof in recent years and it is the average, honest motorist who is footing the bill in higher premiums. 

Jack Straw's motion to crack down on referral fees passed the latest hurdle in the House of Commons following a Ten Minute Rule Motion back in September and The Motor Insurance Regulation Bill making it illegal to sell on personal injury details to lawyers is set to be introduced on 20 January 2012. 

As well as Brokerbility members, insurers and representatives of the British Insurance Brokers' Association were also in attendance to give an industry perspective on the subject of referral fees, which has divided opinion within the industry.

Commenting on the significance of the meeting, Paul Brown, director at Franklands said:

"The aim of the meeting with Jack Straw was to give him the industry's perspective on this highly contentious issue and listen to his views on the subject.

"Franklands has never been involved in this dubious practice and it is important that the industry engages with Jack Straw on this topic and to that end the meeting was very productive," added Paul.

Franklands is one of the Midlands' leading firms of independent corporate insurance brokers. The company prides itself on providing the right cover at the right price and allocates a dedicated team of insurance professionals to each client to ensure they build strong, long-term relationships with them.