“NFDA is pleased to see that FCA is satisfied with the impact of their previously introduced remedies on GAP insurance”, said Sue Robinson, Director of the National Franchised Dealers Association (NFDA) which represents franchised car and commercial vehicle dealers in the UK.
The Financial Conduct Authority (FCA) has published today an Evaluation Paper (18/1) on their intervention in the guaranteed asset protection (GAP) market*. The paper is an evaluation of the success/failure of the FCA’s intervention and remedies that came into force on 1 September 2015 to help consumers better assess whether they need GAP insurance and to shop around if they do.
Robinson continued, “FCA has found that consumers are still buying GAP from dealers rather than going elsewhere such as online. However, the overall number of consumer buying GAP has dropped partly due to the four-day waiting period which has resulted in consumers not buying rather than shopping around.
“It is encouraging to see that FCA also appears to have acknowledged the importance of selling add-on insurance at point of sale as this makes customers aware of the product and its importance.
“NFDA will read the Evaluation Paper thoroughly and communicate directly to our members any further, relevant updates.”
notes to editors:
About the RMI
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.