NAB accuses authorities of failing to address consumer detriment

Published 19/02/2014 00:00:00 in Press Releases

The National Association of Bodyshops (NAB) has criticised the behaviour of many insurers leading up to the Competition Commission (CC) investigation into private motor insurance (PMI) for breaching governance standards required by the Financial Conduct Authority (FCA) through failing to treat consumers fairly and behaving in ways that have risked the integrity of the market.

“NAB suggests that many of the observations and supporting documents provided to the CC by the insurance industry do not materially change our view that the tripartite relationship between consumers, insurers and bodyshops is unbalanced and that consumers are suffering detriment due to the current dysfunctional nature of the insurance claims process,” says Frank Harvey, Head of NAB.

“This is not a sustainable position for our members or the body repair industry as an entity, or for long term consumer satisfaction.”

In its latest submission* to the CC’s investigation into PMI NAB has also fired a broadside at the FCA and its predecessors for falling short of protecting consumers by tolerating insurer dysfunctional behaviour over many years.


NAB accuses the FCA of failing to observe its own terms of reference:

•           to carry out conduct assessments for large firms and regular assessment for smaller firms that would have identified misconduct

•           to monitor products and other issues to ensure firms play fair and don’t compromise consumer interests

•           to respond quickly and decisively to events or problems that threaten the integrity of the industry


NAB also claims the FCA and its predecessor, the Insurance Ombudsman have allowed motor insurers to conduct unrestrained opaque relationships with each other by:

•           manipulating consumer rights at times of extreme distress

•           profiting from rebates, referral fees and discounts

•           unrestrained use of intermediaries and suppliers (either offset or wholly owned)

•           operating tax avoidance measures


Frank Harvey continues:  “Over two decades, these matters have been placed on record with various government departments, the FCA, the Insurance Ombudsman, the Office of Fair Trading and now the Competition Commission by the Retail Motor Industry Federation, NAB and others. 

“Organisations that were set up to protect consumers have clearly failed them according to the provisional findings of the CC.” 

NAB also has concerns about the scope of the CC investigation.   In its response to the CC’s provisional findings, Frank Harvey says:  “NAB believes the CC’s terms of reference for its investigation have been narrow and overly simplistic given the complex nature of the motor insurance claims process.

“NAB argues the Provisional Findings and Suggested Remedies provided by the CC will not address market dysfunction nor will they eliminate consumer detriment because they do not apply across the whole motor insurance market.”

* NAB Observations relating to the Provisional findings report and Appendices & Glossary


Please click here to view the NAB Response to the Provisional Findings relating to the Competition Commission Private Motor Insurance Market Investigation




Rupal Rawal, Communications Assistant
Tel: 020 7307 3412
Mob: 07528 977 157
Press Office direct line: 020 7307 3422
Press Office fax: 020 7307 3406

Web: Email:

The Retail Motor Industry represents the interests of operators in England, Wales, Northern Ireland and the Isle of Man providing sales and services to motorists and businesses. The RMI has a formal association with the independent Scottish Motor Trade Association which represents the retail motor industry in Scotland.   

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