New changes could be incoming for the GAP insurance market, after a study by the Financial Conduct Authority
New changes could be incoming for the GAP insurance market, after a study by the Financial Conduct Authority looked into the way things were conducted. In July 2014 several key issues were identified concerning the sales of GAP insurance by the motor industry, with a consultation paper being published in December.
The paper includes some important proposals, such as the possibility of a mandatory deferred opt-in option to be made available for all sales of GAP insurance. This would basically impose a break between the purchase of the vehicle and the purchase of GAP insurance. Another proposal includes enhanced information disclosure by insurance vendors to encourage consumers to consider alternative vendors and ask whether they actually require GAP insurance.
The deadline for responses to the proposals is this March, with a final policy statement expected for July. Any final rule changes will likely come into force by September. Any insurance companies that produce GAP insurance products, firms that distribute it alongside the sale of a motor vehicle and other intermediaries involved in the process of GAP insurance will be affected.
Click4Gap is a leading online provider of GAP insurance and as such took a keen interest in the story. A spokesperson said: “Market studies like this are pivotal for the future of GAP insurance and making sure the consumer is protected from any companies who might be performing something shady.
“At Click4Gap we are committed to providing a top quality service that is hugely beneficial to people all over the country. We will work to comply with any policy changes that come into effect in the future and will continue to offer a great service to new and existing customers.”
Click4Gap is a UK based firm and online provider focused providing flexible insurance products to their consumers. As well as being FCA registered the company is also a member of the Financial Ombudsman service (FOS) and the Financial Services Compensation Scheme (FSCS).
This press release was distributed by ResponseSource Press Release Wire on behalf of Click4Gap in the following categories: Motoring, Personal Finance, Travel, for more information visit https://pressreleasewire.responsesource.com/about.