How will a referral fee ban affect fleets?
There is little doubt that some form of ban will now be imposed; the only questions are when and to what extent. Companies that provide services into fleets, and which are also reliant on revenues from referral fees will face difficulties. How will this affect fleets that have relied on their services?

To add to this, the ban on referral fees for injury claims is likely to go hand-in-hand with a reduction in lawyers’ recoverable costs.

Recent reports and parliamentary debates point to a realisation of the connection between these and all signs point to a referral fee ban and a cap on lawyers’ fees happening simultaneously. At first glance, this looks like good news for fleets that could enjoy automatic cost saving in fault injury claims. However, it is not yet clear to what extent lawyers will succeed in their fight for a minimal reduction to be imposed – they are a powerful lobby in the corridors of the legislature.

The flip side will be a reduction in claims revenues for those companies that currently benefit from referral fees. However there are already moves underway to replace these revenue streams through profit-sharing arrangements with the new form of shared-ownership law firms emerging

Reassuringly change is afoot - and where there is change there is opportunity. There are many wise heads in this market and 2012 is likely to see an increasingly creative crop of fresh ideas to fill the gaps in this changing environment. The hope is that this innovation will be used for the right reasons and not for easy profiteering from the plight of victims of accidents. Fleet managers also need to be alert to the opportunities for pro-active control of claims costs that these developments offer.