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Government decides on Mesothelioma plan NEWS ➔


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Insurers were quick to give their support to most parts of the


report, with Simon Douglas, director of AA Insurance, saying that the insurance industry would co-operate fully with the Competition Commission to help contain costs. “As the Competition Commission points out, there are several


organisations involved in the claims process. If the result of the investigation is greater transparency and streamlining the way that claims are managed, particularly by the at-fault insurer, it will benefit both consumers and the insurance industry by reducing costs,” he said. The ABI's Dalton also welcomed the Commission's remedies,


calling them a "further step along the road to getting a market that enables insurers to deliver fully for consumers". Nigel Teasdale, a spokesperson for the Forum Of Insurance Lawyers (FOIL), said that the findings did not contain any real


surprises over replacement vehicle issues but added that it was about time that changed were made to the credit hire industry. "Compulsory provision of replacement vehicles on a first party


basis or making it compulsory to go to the at-fault insurer would require a change to the law, but may be the most definitive way of ending the practice of excessive credit hire costs, which have been an issue ever since credit hire reared its head in the early nineties,” he said. ●


Tere is insufficient incentive for insurers to keep costs down even though they are at the receiving end of the problem"


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Claims Magazine/Issue 11/ 09


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