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It has been announced that the Financial Services Authority are to launch a new study into the sales of additional insurance products, or 'add ons' as they are commonly known. These items may include warranties, tyre insurance and Gap Insurance, and the study will look at how they are sold and how they deliver value to the customer.
Traditionally these types of 'add on' products are offered by car dealers at the point of vehicle purchase. The new study will look at how selling at this time effects the circumstances of the sale, and indeed if competition is encouraged in the process also. Although the specifics of the study are not clear as yet, but the move is one welcomed by GapInsurance123 as Director of Aequitas Automotive, Mark Griffiths, explained.
"We welcome the news of the new study into the sale of add on products in the UK. We feel it is necessary as the industry has evolved in just a few short years. In the world of Gap Insurance, the products on offer these days go far beyond the simple 3 year Return to Invoice cover offered by many motor dealers.
Although the study has not taken place yet, we hope the outcome is clear to consumers that there are choices out there, and that consumers are made aware that they can buy products away from the dealer also. We feel this will increase competition and ensure that consumers have access to products that will suit their needs rather than finding suitable features within just one product.
Our results in 2012 have been far beyond our expectations for the business, nearly a 200% growth than compared to 2011. Clearly the message to consumers is slowly getting through, but a more unform approach would be better."
The FSA study is due for completion in the second half of 2013, and its findings made available to the new FCA body.