The apparent contradiction in two adjacent statements from the Commons Select Transport Committee  – that referral fees should be banned but they should also be made more transparent, implying that they would not be banned – left ABI director of general insurance Nick Starling perplexed yesterday. He said that the ABI was "baffled that the Transport Select Committee has again called for the transparency of referral fee arrangements of insurers". Mr Starling felt that the banning of referral fees was needed to improve the situation for consumers. The industry response was generally positive. RSA Insurance CEO for UK and Western Europe Adrian Brown said that RSA Insurance welcomed the report. "We fundamentally believe that a wider root and branch review of the structure of personal injury fees and payments for soft tissue injuries is needed". Mr Brown claimed that "further transparency with regard to referral fees will do nothing to address customer's concerns or improve their premiums". He said that RSA was "disappointed that the Committee seems to have targeted their criticism at insurers rather than tackle the dysfunctional nature of the system". Insurance broker AA Insurance also welcomed the report. AA Insurance director Simon Douglas said that "a claims culture has developed to the extent that it has become accepted that, if another vehicle hits your car, you should make an injury claim". There was no comment from Wales-based insurer Admiral, one of the main insurance company beneficiaries of the referral scheme system and previously a strong supporter of the status quo. Admiral has also been rumoured to be looking into the establishment of its own law firm, which would enable it to conform with any ban on receiving referral fees from lawyers.