Not all claims are valid. Not all claims are made. Both mismatches are a tragedy in some way.
Claims management services, whether they are dedicated companies or simply entrepreneurial local lawyers wishing to get more business, can help people. They can help people who would otherwise not make a claim, or who have been unfairly pushed out of the claim process.
On the other hand we have seen literally thousands of false claims exposed in the UK, and some examples of grossly inflated claims. Money Marketing has this interesting article on one recent case. Link.
Don't think it can happen here? Well, claims management companies are already growing strongly in Australia. There are two here in New Zealand. Each will probably drive not only more claims against insurers but more complaints about advice as well.