NAB RESPONSE - CMA PROPOSED REMEDIES

Published 12/06/2014 00:00:00 in Press Releases

Competition and Markets Authority (CMA) proposals to make the private motor insurance (PMI) market increase competition and reduce the cost of premiums for motorists.

The National Association of Bodyshops (NAB) is the leading not-for-profit trade association representing the UK body repair sector.

NAB has participated proactively throughout the investigation by the Competition and Markets Authority (CMA) into Private Motor Insurance (PMI); we welcome the fact that many of our recommendations relating to improved consumer experiences following a motor insurance claim have been taken into consideration within the CMA’s proposed remedies announced today.

Specifically, NAB welcomes suggested measures aimed at providing consumers with better information about their rights following an accident and notes that arrangements to monitor repair quality will remain a focus but do not require a full remedy.

NAB will now consult with its members about the explicit details proposed within the CMA’s working papers before responding in full.   

 

ENDS

NOTES TO EDITORS: NAB’s submissions to the PMI investigation have consistently promoted a vision of a pan-industry adjudicator - an Independent Lead Body - to uphold legal, ethical and moral behaviour in the sector.  NAB has amplified this vision through proposals for the establishment of “The Motor Insurance Conduct Adjudicator (MICA”). 

The proposals enjoy the unequivocal support of the NAB, Retail Motor Industry Federation (RMI) and Vehicle Builders and Repairers Association (VBRA). 

NAB suggests that MICA is an essential component to ensure CC remedies (aimed at rebuilding consumer confidence in the motor insurance sector by defining fair rules for all) are fully accomplished while providing a credible, independent platform to mitigate current and future market dysfunction.

In addition, given the continued capacity for creative and opportunistic behaviour by the majority of motor insurers and various intermediaries, the requirement for an independent Adjudicator to define and enforce market rules, thus bringing about a more appropriate behaviour in the sector, has never been more apparent.

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