A leading industry compliance expert has backed the service offered by professional and licensed paid claim intermediaries, as the corporate regulator prepares to examine the sector.

As previously reported, the Australian Securities and Investments Commission will carry out a review of claims management groups after concerns were raised over some business practices. 

Compliance Advocacy Solutions MD Paul Muir, in an article written for insuranceNEWS.com.au, says it is important to distinguish between “professional claimant intermediaries” operating under an appropriate licence and “predatory conduct commonly described as storm or disaster chasing”. 

“I support the role of professional claimant intermediaries in helping customers secure fair outcomes, particularly when claims become complex, disputed or overwhelming,” he writes. 

He says licence obligations provide important guardrails, but a “claimant intermediaries representative industry body and a dedicated code” could build on them. 

See ANALYSIS.