Admiral reveals referral fee income
Insurance giant Admiral has revealed that it rakes in £7 in personal injury referral fees for every vehicle it covers. The figure appears in the company’s half-year financial report, which lists modest increases in ‘other revenue’, including income from referral fees.
Admiral insures 3.5m cars in the UK, suggesting that it earns around £24.5m each year from referral fees. In the first six months of 2012 this income contributed to net other revenue of £104.4m, up from £101.2m for the same period in 2011.
The figures give a sense of the impact of the proposed ban on referral fees in personal injury cases, which is due to come into force next year.
Last year it was reported that the Cardiff-based Admiral group was considering setting up its own personal injury law firm or buying into another, to guide insurance customers with claims.
Admiral declined to comment on potential plans to become an alternative business structure, or how it intends to deal with the shortfall following the referral fee ban.