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Claims Standards Council: Codes of Practice

Answer

The Claims Management Regulation Unit in the Ministry of Justice uses a number of methods to monitor compliance with the regulatory requirements.When a business is authorised they are risk rated. Businesses considered as medium or high risk are actively monitored and regular information is sought on consumer contracts, claims acquisition methods, referral arrangements and the content of marketing materials to assess whether the claims management service being provided is compliant. The Claims Management Regulation Unit receives significant intelligence from on average 1,500 contacts per month from consumers, other enforcement bodies such as trading standards departments and organisations that receive claims.Where analysis of this information identified suspected rule breaches the relevant claims management businesses may be subject to a paper or on site audit, directed to take remedial actions, issued with warnings, required to agree to formal undertakings. All investigations are conducted following the National Intelligence Model which is used by the police to gather and assess intelligence.Nearly 500 investigations have been conducted in the last two years. We are not able to publish the outcomes in respect of all individual businesses. In general the outcomes include no further action as the business has immediately complied, the agreement of specific undertakings, attachment of additional conditions on the businesses' authorisation and the suspension or cancellation of authorisation. 191 cancellations have been issued since the introduction of statutory regulation in 2007. Details of all the businesses suspended or cancelled are posted on the claims management website at:"www.claimsregulation.gov.uk"

Secondary information

Type

Written question

Reference

10788; 514 c683-4W

Session

2010-12

Subjects

Codes of practice Claims Standards Council

Link

View this Written question on www.publications.parliament.uk