ABI responds to the FCA’s General Insurance 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.”
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