Many insurers and brokers are nonetheless failing to reveal they’re providing truthful worth to prospects regardless of trade efforts to enhance governance and oversight relating to Assured Asset Safety (GAP) merchandise.
GAP insurance coverage is an add-on to motor insurance coverage and covers the distinction between a car’s buy worth and its present market worth.
Earlier this yr, the FCA mentioned its knowledge confirmed that there had been circumstances the place solely 6% of the quantity prospects paid in premiums was paid out in claims with some companies paying out as much as 70% of the worth of insurance coverage premiums in fee to events within the distribution chain, corresponding to dealerships.
Because of this, companies providing any such insurance coverage got a three-month ultimatum by the regulator in February to take quick motion, or threat intervention. Some companies had been allowed to renew providing GAP add-on gross sales in Could.
In a brand new report, the Monetary Conduct Authority (FCA) flags ongoing challenges significantly in data sharing between insurers and brokers, in addition to in precisely figuring out goal markets.
