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DWF jointly hosts forum with the MOJ and ABI to discuss CMC regulation in Scotland

19 February 2018
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A forum to highlight the importance of the upcoming CMC regulations in Scotland has been hosted by international legal business DWF alongside key industry insurers, the ABI and the MoJ. 
The forum, which was held in DWF’s Glasgow office, was attended by key industry insurers, including RSA, Aviva, Allianz, AXA, DLG and Markerstudy. Speakers included Kevin Rousell, Claims Management Regulator in the Ministry of Justice; Alastair Ross, Assistant Director and Head of Public Policy (Scotland/Wales/Northern Ireland) and Jill Sinclair, Head of Counter Fraud Scotland.

Absence of fixed costs and availability of referral fees combined with legal reforms in England have undoubtedly pushed the more dubious CMCs to move their claims generating activities into Scotland. The focus of this forum was to specifically look at how the industry can collaborate to bring in measures to disrupt the activities of CMCs in Scotland.

Alastair Ross, Assistant Director and Head of Public Policy (Scotland/Wales/Northern Ireland) said: "The regulation of claims management companies in Scotland is essential to ensure that consumers here enjoy the same level of protection from nuisance calls and other invasive claims farming tactics from unscrupulous firms. The ABI is pleased to be working with DWF and the Ministry of Justice to raise the level of awareness of the new regulatory regime for CMCs in Scotland.”

Kevin Rousell, Claims Management Regulator in the Ministry of Justice said: “Scotland is approaching a key moment in the further development of access to justice and regulation of claims services. I was delighted to have the opportunity to discuss the experience and challenges of regulating CMCs in England and Wales over the last 10 years, the current regulatory priorities and identify read across to the Scottish context. The experience has shown the crucial role collaboration between regulators and key stakeholders in the claims system has to play in helping to ensure that bad claims management practices are tackled, redress mechanisms work efficiently and effectively and consumers receive good service.”

DWF have long campaigned jointly with the ABI for the Regulation of CMC's in Scotland and have met with numerous stakeholders in politics and the Civil Service to argue a case for reform.  In September 2017 Andrew Lothian, Head of General Insurance (Scotland) gave evidence to the Justice Committee of the Scottish Parliament on behalf of FOIL on the Civil Litigation (Expenses and Group Proceedings) (Scotland) Bill, and argued for CMC regulation in Scotland.  

Andrew Lothian, DWF head of general insurance (Scotland) said: "The Scottish claims environment will be transformed later this year with the advent of DBAs and QOCS. With the Scottish Government now agreeing that Claims Management Companies should be regulated, this was the ideal time to hear direct from Kevin Rousell about how CMC regulation has operated south of the border.  The key message is for insurers to act now to disrupt the activities of CMCs in Scotland and take the opportunity to help shape the new claims landscape."

Further Reading