in association with


Credit hire “rip off”, saysAJAG


T


he Access to Justice Group (AJAG) has published the results of research which, it says, “has revealed the extent to which the insurance industry itself inflates claims for the credit hire of replacement vehicles after road accidents”.


Andrew Dismore, AJAG


co-ordinator, says, “The insurance companies are always ready to blame others for the cost of car insurance, but this research shows they are part of the


problem. Under the official Association of British Insurers’ GTA rates, the cost to hire a medium sized family car for a week is set at £349. The average on the regular market to rent a similar car is £172 and the cheapest comparator would have cost £224 less than the ABI rate. Similar huge differences apply for all classes of credit hire, from small cars to white vans and prestige vehicles.”


AJAG believes the


solution is “to end the ABI’s sweetheart deal with the credit hirers as to the charging of rates”. The primary obligation to provide replacement vehicles should be with the liability insurer, it concludes.


AXAchooses Xactware for household claims


XA Personal Lines has selected Xactware’s products to manage claims estimating and supply chain workflow for household claims, with the aim of enabling “better


A


transparency and control of cases” and shortening process times.


Christine Matthews, head of household claims, says, “AXA is committed to adopting innovative ideas that will provide customers with the best service in the marketplace. We continually review our


offering and processes to ensure we use the most effective and customer- friendly processes available.”


Newstrategic plan from Thatcham


he Thatcham centre is launching a vehicle based research strategy, with a “significant” investment in resources to put Thatcham at the forefront of research and testing of emerging technologies, such as autonomous emergency braking systems (AEB). The centre will also be investing in facilities to


T


gain full Euro NCAP safety testing accreditation. There will be an update to Thatcham’s data, aimed at providing its core products and services in a more efficient way. This will include an online portal, where vehicle data can be exchanged with insurers, vehicle


manufacturers and repair body shops.


FSAguidance on price comparison sites


F


ollowing thematic work in 2010, the Financial Services Authority is reminding firms who sell general insurance through price comparison websites of the requirement to hold the appropriate permissions and comply with the appropriate handbook rules for any other regulated activity.


The authority says that firms should:


● review their regulated activities and ensure they are appropriately authorised or otherwise exempt;


● ensure they only enter into contracts with firms holding the appropriate authorisation and permissions to conduct that regulated activity;


● withdraw assistance from third parties if they are in breach of general prohibition;


● review disclosure documentation, sales procedures and terms and conditions and make sure these are compliant with all relevant regulatory requirements;


● and establish, implement and maintain adequate policies and procedures to ensure they comply with all relevant obligations.


Christine Matthews


The FSA says it is concerned that its Principles for Businesses are not being complied with, in particular principle 6 and the requirement to treat customers fairly.


NOVEMBER 2011 insurancepeople 27


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