The chair of the Motor Accident Solicitors Society has appealed to the insurance industry for ‘honesty’ in the debate over the effects of a ban on referral fees.

Addressing the Association of British Insurers conference on Tuesday, Donna Scully, partner at Liverpool firm Carpenters, called on firms to justify assertions that premiums would fall when fees are banned.

She also suggested that companies publicly calling for a ban are privately seeking ways to get round it, potentially through newly introduced alternative business structures.

‘I would ask you to be honest about whether or not you are in favour of a ban,’ said Scully. ‘How will premiums reduce following a ban - which is what everybody is expecting - when your income will be reduced?

‘Be honest about saying you support a ban but at the same time actively trying to find ways to get around it such as ABSs.’

She called for a holistic approach to tackling problems in the personal injury sector, including a halt to texting and cold calling, tighter regulation of advertising, and greater safeguards around third-party capture and claims management.