Investigation into the practice of selling customer data to personal injury claim specialists

Updated July 2011

The government is to investigate the practice of insurance companies selling customer data to personal injury lawyers.

The investigation will focus on the practice of selling customer data to personal injury specialists for a referral fee within the insurance industry. Personal injury lawyers then contact individuals following an accident to encourage them to claim compensation on a "no win, no fee" basis.

The investigation was sparked by an article in the Times on 27 June 2011, written by the former Justice Secretary Jack Straw, which stated that it is industry practice to refer clients to personal injury lawyers without first obtaining their client's consent.

Although the Information Commissioner's Office (the ICO) has not, as yet, launched any formal investigation, the ICO has confirmed that it is looking into whether this practice constitutes a breach of data protection law and is currently making enquiries into this practice with the Association of British Insurers.

If you require any assistance in relation to this or any other data protection matter, please contact Alison Deighton.

This publication is intended for general guidance and represents our understanding of the relevant law and practice as at July 2011. Specific advice should be sought for specific cases; we cannot be held responsible for any action (or decision not to take action) made in reliance upon the content of this publication.

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