Commenting on the conclusions of the CMA investigation into the UK motor insurance market* Martin Andrews, director general of the CHO (Credit Hire Organisation) which represents the UK credit hire industry, said:
“The report is a victory for consumers. We welcome the fact that, after a three year investigation, the CMA has concluded that non-fault customers do indeed require our assistance in their hour of need, and their legal right to a replacement vehicle while their car is off the road has again been reinforced.
“The CHO does not agree with all of the CMA’s findings however, and in particular the basis by which the CMA has identified and quantified a supposed adverse effect on competition with regard to the provision of temporary replacement vehicles.
“We also believe that the CMA has missed an opportunity by dropping their earlier recommendation that insurers be obliged to make consumers aware of their legal entitlements when they make a claim.”
Looking ahead, Mr Andrews continued:
“Since day one of their investigation we have explained that the GTA (an existing voluntary protocol already used by most insurers and credit hire companies (CHCs) to manage replacement vehicle motor claims) is the most practical way forward, and the CMA confirms this to be the case.
“Now that this investigation has concluded and the valuable service that CHO members provide to consumers has been safeguarded we now urge all insurers to throw their full support behind the GTA, including the launch of an electronic portal. This will enable insurers and CHCs to share information more effectively and improve the motor claims process for the benefit of our customers, as well as reducing unnecessary frictional costs.”
*Competition and Markets Authority Report: Private Motor Insurance Market Investigation