The chickens are coming home to roost. The pot and kettle are at it again. Something smelly is hitting the fan.

I am running out of idioms here.

Admiral Insurance made £142.4m profit last year from it's motor arm (remember they are part of an industry pleading poverty to the Government). Now, 52% of this profit related to 'ancillary sales'.

What is this? Well, I doubt Admiral sell many replica parrots or sailor's hats so where could this £74.05m profit be coming from? Could it be from referral fees? Many leading experts think so and so does the stock market.

More evidence I feel that it is not the 'claims culture' nor adverts on TV causing a rise in motor claims. It is the insurance industry themselves.

Now what do you think they will be claiming next? I know, they will be saying that, by being allowed to charge referral fees, they can keep the cost of premiums down. If they weren't allowed them then they would have to put the premiums up to keep as profitable. It's an interesting argument but clearly flawed. If all insurers ceased flogging cases, the number of claims would drop and so the amount of money being paid out would fall as well.

But hey, I'm just a lawyer who runs an insurance broker. What do I know?

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