The ABI's has responded to the FCA's GI retail
announcements;
ABI Director General Hannah Gurga said: “The
FCA's findings confirm that record-breaking claims costs are
behind recent increases in motor insurance premiums. They also
demonstrate that many of these cost pressures - such as rising
vehicle repair costs, part shortages and increased thefts - stem
from issues beyond the industry's direct control, making
collaboration essential to find sustainable, long-term solutions.
“Ensuring a smooth and stress-free claims process is crucial for
customers when going through what can already be incredibly
difficult circumstances. Our members work hard to achieve this,
but we will engage with them and the regulator to understand what
improvements can be made in the claims handling journey, to
ensure good outcomes for customers and to support trust and
confidence in the industry.”
On Premium Finance, ABI Director General Hannah Gurga
said: "Having the option to pay for insurance in monthly
instalments can provide flexibility for those who need to manage
their budgets.
“Offering this service does involve costs for insurers, and firms
also have to keep cover in place for a period of time if a
payment is delayed or missed.
“Our Premium Finance Principles, which we published last year,
outline that any charges should be fair, transparent and
reflective of the costs that the insurer faces. We'll continue to
work with our members on this matter and engage with the FCA's
review.”
