The first private contempt of court case against a lying third-party personal injury claimant marks a tipping point for the insurance industry.

Fraud is likely to be high in 2009, as well as being high up on the agendas of law enforcement and regulators alike, but RBS Insurance’s decision to investigate a fraudulent claimant and bring her to book is a sign of the times – the insurance industry has had enough.

As Forum of Insurance Lawyers president Anthony Hughes said, fraudsters before got a ‘slap on the wrist’ in situations like these. But if the government, for example, is making a noise about rooting out as much benefit fraud as it can, why should insurers remain laissez-faire about PI fraud?

And considering the mess the economy is in, saving money previously consigned to the loss sheet is a no-brainer when it comes to convincing shareholders that everything is being done to hold the line.

It is important to remember that solicitors were not involved in this case until contempt proceedings started. If they had been involved earlier, Joanne Kirk might not have been landed with hundreds of thousands in costs and damages.

Either way, this is a landmark case. As the recession bites, expect to see more fraud – this is as inevitable as death and taxes – but also expect to see the insurance industry hitting back. As long as its haymakers don’t get wrongly aimed at solicitors acting in PI cases, that can’t be bad news.