The relationship between brokers and accident management companies in the UK commercial motor insurance sector is increasingly strained, particularly when it comes to the smooth running of claims and transparency in fees.

This is amongst the findings of the latest Direct Commercial Limited Broker Barometer, which has found that just 19% of polled brokers believe that accident management companies contribute to the smooth running of the claims process for commercial motor clients.

Following the implementation of the ABI General Terms of Agreement in 1999, a number of brokers established agreements with accident management companies to ensure prompt service for not-at-fault clients and receive essential referral fees.

However, according to the data, 88% of commercial motor brokers are dissatisfied with the lack of transparency in how accident management companies’ fees are derived and paid.

Compounding these challenges is the perception amongst 82% of commercial motor brokers that accident management companies contribute to claims farming.

Joe Hantson, deputy CEO of Direct Commercial Limited, commented: "Our Broker Barometer findings highlight a pressing need for greater openness and accountability to restore trust and improve the efficiency of the claims process. We always encourage direct claims reporting to our team by drivers from the roadside, as timely intervention ensures quicker resolutions and keeps incurred costs down.

“When you add accident management companies into the claims process, we do see this have an impact on direct reporting which can in turn contribute to higher overall incurred costs and less efficient claims handling.”

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