NFDA is pleased to see that FCA’s previously introduced remedies on GAP insurance have had a positive impact.
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.
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.
You can read the full document here: https://www.fca.org.uk/publication/corporate/gap-insurance-intervention-evaluation-paper.pdf