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Insurance: Motor Vehicles

Volume 498: debated on Tuesday 27 October 2009

To ask the Chancellor of the Exchequer (1) what progress the Financial Services Authority has made in its investigation into the practice of third party capture in the insurance industry; (295791)

(2) whether the Financial Services Authority plans to take regulatory steps to ensure that insurance claimants involved in accidents have adequate opportunity to receive medical or legal advice before settling any claim.

The FSA has carried out exploratory work on the issue of third party capture in the insurance industry in order to assess the nature of the practice and the level of risk to consumers. The FSA has recently concluded this risk assessment work and is currently liaising with the relevant trade bodies to agree what action can be taken by the industry to mitigate the risks to consumers. Once these discussions are concluded, the FSA will consider what further actions, if any, are required to address any residual consumer risk attached to the practice of third party capture by the insurance industry.