BVRLA welcomes FCA’s study into motor insurance market
The British vehicle Rental and Leasing Association (BVRLA),
has welcomed the decision of Financial Conduct Authority (FCA) to launch a market
study on general insurance pricing practices, including motor insurance.
Although the FCA’s goal is to ensure that the retail general
insurance markets deliver competitive and fair prices for consumers, the BVRLA
argues that SMEs were equally as vulnerable as consumers.
Additionally, the BVRLA wants the FCA to widen its market
study into retail motor insurance pricing to include self-drive hire premiums.
BVRLA chief executive Gerry Keaney said: “We welcome the
FCA’s focus on insurance pricing practices and will be more than happy to work
with the FCA as it embarks upon this market study. We would however, like to
see the scope of work expanded to include small and medium-sized businesses as
they too are vulnerable when it comes to suffering the effects of unfair and
discriminatory insurance pricing.
“Only two weeks ago, the FCA confirmed plans to extend
access to the Financial Ombudsman Service to more small and medium-sized
enterprises, which is a great indicator that the regulator is keen to also
protect the interests of small businesses.
“BVRLA members are increasingly raising their concerns about
unfair pricing practices where their premiums have drastically increased with
little or no explanation - we believe we need greater transparency and
competition in the motor insurance market.”
Andrew Bailey, FCA chief executive, said: “Our initial work
has identified a number of areas of potential consumer harm. We want to make
sure that general insurance markets deliver competitive and fair prices for all
consumers. This market study will help us examine the outcomes from general
insurance pricing practices and inform how, if necessary, we should intervene
to improve the market.
“If change is needed to make the market work well for
consumers, we will consider all possible remedies to achieve this.”
The FCA plans to publish a final report by December 2019.