Adrian Furness speaks out about CMA motor insurance reforms

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.”

-Ends-

About Covéa Insurance

Covéa Insurance Plc is the UK underwriting business of a leading French mutual insurance group Covéa. 

Covéa Insurance is independently accredited by the Institute of Customer Service, with a ServiceMark Distinction for its entire UK operation. It also holds Chartered Insurer status for its Commercial business.

Covéa Insurance is signatory to the HM Treasury Women in Finance Charter and the Insurance Inclusivity Pledge, and has been named one of the top 75 employers in West Yorkshire & the Humber. Covéa Insurance is a multiple award winner in Diversity & Inclusion and Customer Champion of the Year, and for the fifth consecutive year, received 5-star accreditation in the Insurance Times Broker Service Survey for Personal Lines.