AutoProtect welcome FCA review of Add-On Insurance Products

BRIGHTON, U.K. - Aug. 19, 2013 - PRLog -- The FCA, which, alongside the Prudential Regulation Authority replaced the Financial Services Authority (FSA) on 1 April 2013, has started a market study on general insurance add-on products. For the motor industry, this review will include the sale of GAP insurance products.

AutoProtect has welcomed the announcement having developed their GAP product portfolio in anticipation of increased regulation as long ago as September 2011. AutoProtect’s GAP products were fully updated to reflect the then newly announced ABI’s Good Practice Guidelines, with products re-engineered to ensure customers were treated fairly, whilst still protecting dealer income. 

The FCA formal review of the add-on insurance market, which is a step away from a formal investigation, comes amid concerns that there may be a lack of competition in the add-on insurance market and that consumers may not be getting good value for money, or sufficient information to understand the products they are being offered.

The AutoProtect GAP portfolio has been designed to be straightforward and transparent, making it easy for customers to understand exactly what they are buying and the capacity to vary or even cancel their cover post purchase. Plain English copy and a straightforward sales process, supported with full dealer training are enhanced by a capacity for customers to cancel their policy and obtain a pro-rata refund and options to transfer the balance of a policy to a new car and top up the policy as required. Dealers can have all of this product integrity and still maintain their income.

AutoProtect’s commitment to embrace the ABI Guidelines on a voluntary basis appears to be firmly in line with the FCA’s requirements for product clarity and flexibility. AutoProtect’s Corporate Development Manager Mike Macaulay noted;

 “We have long committed our business strategy to ensure we embrace regulatory changes. The wind of change has been clear for some time. By taking a proactive high integrity approach, we aim to protect and enhance our reputation and that of our dealer and manufacturer customers. The value of this long-term approach is becoming increasingly clear and we are very comfortable about the review and look forward to working closely with the new regulator.”

The study, invites contributions until September 10^th and the FCA expects to publish its findings in early 2014.

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