FCA publishes final rules on GAP insurance add-ons
Final rules will come into force on 1 September.
The Financial Conduct Authority (FCA) has published a policy statement on its final rules to remedy competition in the add-on guaranteed asset protection (GAP) insurance market.
The watchdog proposed the new rules in December 2014, highlighting that there was little competition in the market and a lack of information on alternatives for customers.
The rules will come into force on 1 September this year and according to the regulator they will empower customers when making decisions about purchasing add-on GAP insurance and limit the point-of-sale advantage of add-on distributors.
Firms distributing GAP insurance when selling motor products will be required to provide customers with prescribed information to help them make decisions about the product as well as introduce a deferral period, which means GAP insurance can't be introduced and sold on the same day.
The FCA released its final report on its review of general insurance add-ons in July last year where it published feedback it had received from organisations after the preliminary market study findings were published in March 2014.
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