The Credit Hire Organisation (CHO), the trade body for the UK credit hire industry, has today issued a document entitled Indication of Support - GTA Portal to senior executives within the UK motor insurance industry.
Martin Andrews, director general of the CHO, said that chief executives of 15 of the UK’s largest UK credit hire companies (“CHCs”), who all sit on the Executive Committee of CHO trade body have all signed this Indication of Support. He said: “We are issuing an invitation to motor insurers to endorse further work on a GTA portal, which has been in limbo pending the outcome of the Competition and Markets Authority (CMA) report, published last week.”
Mr Andrews explained that, in its conclusions from their investigation into the UK Private Motor Insurance market, the CMA sought to encourage the industry to advance the GTA Portal as one of the means by which friction could be removed from the supply chain of temporary replacement vehicles.
He said: “Over the last two years the GTA Technical Committee, with the involvement of CHCs and insurers, has developed a full product specification and managed a competitive tender process leading to the identification of a preferred partner to build and host the GTA Portal.”
He added: “The build and implementation of the GTA Portal has been on hold while the CMA completed their investigation. The final report of the CMA does not require the GTA Technical Committee to make any changes to the original product specification.”
Mr Andrews said that it is intended that the Portal will be an electronic platform aimed at eliminating friction by eradicating additional costs of settlement through a semi-automated rules based structure which would allow more claims to settle earlier without incurring late payment penalties and, more importantly, those claims where there is a dispute to be identified and addressed sooner in the process thereby reducing the incidence and consequential costs of litigation.
The document circulated today invites Executives in the insurance industry to endorse the continuation of the work started and then paused by the intervention of the CMA in order that the GTA Technical Committee can be confident of a mandate to commission the GTA Portal to conclusion.