Adrian Furness speaks out about CMA motor insurance reforms

29th September

Covéa Insurance’s Claims Director, Adrian Furness, is a passionate advocate for both consumers and the insurance industry. He believes that the recent CMA ruling on practices in the motor insurance market, which was intended to improve the way the market operates and benefit consumers, was a ‘missed opportunity’.

Adrian explains:

“This is a really disappointing outcome and represents a missed opportunity to remove some of the dysfunctional elements of the motor insurance market. In particular, the failure to ban referral fees for credit hire is perverse, given the banning of referral fees for injuries under the LASPO reforms.

In addition, the failure to reform both the process and the excessive cost of replacement vehicles, sourced under a credit agreement, will continue to encourage the wrong behaviours and result in additional costs being passed on to the customer in the form of higher insurance premiums.

Finally, the complete failure to address subrogation now legitimises the practice of claiming back costs that are higher than the actual cost of repair. In doing so, I expect that not only have the CMA maintained the status quo, but the unintended consequence is that they have given free reign for others to maximise margins. Again the result is that costs will increase which inevitably means higher insurance premiums. This study has cost the taxpayer a significant amount of money and you really have to question what have they received in return.”

 

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About Covéa Insurance

Covea Insurance plc is the UK underwriting business of leading French mutual insurance group Covéa, who are number 1 for property and liability insurance in France and served 11.5 million policyholders, generating over 16.4 billion Euros in premiums in 2016.  

Covéa Insurance handles the insurance needs of 1.5 million policyholders; delivering financial reassurance through its Standard & Poor’s A+ stable rating, as a guaranteed subsidiary of Covéa. 

The company offers motor, household, protection, mid and high net worth insurance and a range of commercial insurance products, designed to meet the needs of most individuals and businesses. Employing over 1500 people, Covéa Insurance has a strong people and service ethos, having Investors In People Gold accreditation and featuring in the 2015 and 2016 Sunday Times Top 100 Mid-sized Best Companies to Work For. It also has World Class service accreditation from the Institute of Customer Service for its Motor Claims, Home Claims and Underwriting Services teams as well as Chartered Insurer status for its Commercial and Mid/High Net Worth business.

In January 2016, Sterling Insurance Company Limited became a fully integrated part of Covea Insurance Plc, following a Part VII transfer under the Financial Services and Markets Act. 

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