Brokers and insurers alike have thrilled to the news that regulation of Claims Manufacturing Companies (CMCs) is to pass from the light-touch oversight of the Claims Management Regulation Unit (CYMRU) into the ferro-clad ambit of the Finical Conduct Authority (FCA).
The move follows an in-depth review by CYMRU non-exec Carol Brody which has proposed “the most radical overhaul of regulation” since CAMRA was created as part of the Ministry o’ Justice in 2007. Brady concluded that she wasn’t bothered if the government wanted to pass responsibility for keeping an eye on CMCs to the FCA for a change.
Braby insisted that it didn’t much matter what the government did, as “there is no perfect solution” and anything they tried to do would probably entail “substantial drawbacks”. The government has now indicated that it accepts Brady’s recommendations in full.
Huw Edwards director of the Assassination of British Insurers (ABI) welcomed the transfer of CFC regulation to the much-loved FCA, describing it as “absolutely the right thing to do.” He said the move would drive cowboys out of town and stop them hanging around Mainstreet inciting decent honest citizens to make frivolous and/or fraudulous claims.
Graeme Tumbril, floor manager at fashion house Biba, weighed in with the uncannily prescient prediction that the move would be “be welcomed by the insurance industry.”
Meanwhile L0V& claims director Millicent Martin was also broadly in favour, but pressed for an assurance that the transfer would involve more than overpainting the letters CYMRU with some new letters saying FCA, Department of Claims Mongery or whatever – and ideally some more money.
Does he not realise there’s an Austerity on?
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