GTA Dispute Resolution to Launch this Summer

Online resolution for disputed credit hire claims becoming ‘normal industry practice’ has taken a significant step forward with plans to launch during the Summer of 2026, this will be an online process open to all insurers and credit hire companies (CHCs) who subscribe to the GTA.

Stewart McCulloch, chair of the GTA, announced that the online journey is planned to be “open for business on a voluntary basis in the Summer, after we finalise the rules governing the operation of the platform.”

Stewart said the launch had come about following a successful pilot programme, the first of its kind anywhere in the UK, and has seen nearly 60 cases pushed through the system, which is managed by Allied Universal, using Verisk technology.

He said that, after extensive training for the decision makers in the ADR process, which was a key element for the pilot to work, those decision makers were delivering consistent and accurate ADR outcomes, including 100% for the last third of the pilot.

Stewart noted: “We continue to monitor the skills of those making the decision and we want more cases in the coming months to further develop the skill set of the expert team.”

Turning to the summer launch, Stewart said it would operate on a voluntary basis for motor claims where all parties have agreed to ADR and the hire costs are less than £10,000.

“There are other exemptions, such as if there has been an allegation of fraud, but the decision will be legally binding, and claims meeting the agreed criteria will be offered GTA ADR if they haven’t settled within 61days,” he noted.

Plans to introduce ADR in credit hire have been on the table since early 2024, forming a key plank in agreeing a revised GTA which supporters argue is a great example of the value of self-regulation.

Speaking on behalf of the CHO, chairman Anthony Hughes said:  “This has been a monumental effort, but the goal of a self-funding, self-sustaining ADR process for disputed credit hire cases has been our core focus, because we know that failure would risk regulatory intervention, which, to say the least, has a chequered track record in recent years.”

Anthony explained that ADR is designed to manage GTA cases that would otherwise ‘drop out’ of the process after 60 days (and thus risk being litigated).  “We wanted to find a way to keep cases within the GTA framework, which in turn meant devising some form of dispute resolution system, outside of the County Court.”

He went on: “While the vision was clear, as usual the devil is in the detail, so we’ve had to work through a list of considerations such as competition law, legal enforceability, GTA enforcement, ADR agreements and suppliers.”

For the insurers, Pete Highfield, Head Office Motor Claims Manager at NFU Mutual, and lead on the motor insurer group subscribing to the GTA, said: “We all agree that ADR has the capacity to deliver fast and fair outcomes for all parties, in particular customers who want us to deal with their claim promptly and efficiently, so they can get on with their lives.”

He added: “The pilot has proved that ADR works in this sector, and while there are a few tweaks to make to the rules, I’m confident that we’ll launch later this year. I’m expecting insurers to reduce their claims costs, for CHCs to be paid quicker, and for customers to have a better claims experience.”

“Additionally, we are taking affirmative action to reduce the backlog of cases going to court, which is a key government and judicial objective.”

He explained that the Judiciary has mandated that all sub-£10K civil cases should go through mediation and predicted:

“Within a decade, most if not all low value civil claims will go through ADR. ADR will be just the way things are done around here.”

Commenting for Verisk, Chris Sawford, MD General Insurance for the UK and Ireland said: “It’s great to be part of such a pioneering project, with clear and obvious benefits for all stakeholders. Our technology has been the enabler of a sea change in the way motor claims are processed.”

Commenting for Allied Universal, Andrew van der Westhuizen, Managing Director of Allied Universal Compliance and Investigations, said. “Credit hire is an esoteric and complex part of the claims industry, but I’m delighted with the way our GTA ADR experts have risen to the task during the pilot. The result is a transparent process which all parties can trust to get to a fair decision.”

Stewart McCulloch commented: “The extent of the collaboration between stakeholders should not be under-estimated, especially in credit hire, which has a historic reputation for conflict between insurers and CHCs.”

“The pandemic was a vital element in bringing insurers and CHCs together to manage their way through the crisis, and that spirit has continued towards the launch of the GTA dispute resolution platform.”