Modern Insurance Magazine Issue 62

ASSOCIATIONS ASSEMBLE
Thomas Hudd
Title: National Technical Manager
Association: National Body Repair Association
(NBRA)
Consumer
Protection in
the Automotive
Repair Industry
The National Body Repair Association
(NBRA) recognises the evolving regulatory
landscape and the challenges it presents
- particularly for repairers who, while not
directly regulated, collaborate with insurers
as approved repairers.
We acknowledge that adhering to Financial Conduct
Authority (FCA) requirements can burden repairers
who may not fall under direct regulation. Nevertheless,
embracing compliance as a fundamental aspect
of working with insurers is essential for approved
repairers. Moreover, compliance should be reflected in
the compensation methods for repair services.
Every repairer that becomes a member of the NBRA is
inspected to ensure that they are operating legally and
legitimately, with the correct facilities and capabilities
to competently repair vehicles following an accident.
All new members also join our Chartered Trading
Standards Institute (CTSI) approved Code of Practice,
which offers additional protection to customers in the
event of issues following a repair.
The NBRA are audited annually by the CTSI to ensure
our compliance in upholding the principles of the Code
of Practice. A key measure from the Code of Practice
involves monitoring customer satisfaction, which must
be recorded by a NBRA Code of Practice approved
repairer. Our most recent annual report covering March
2022 to Feb 2023 shows that 15,900 reviews were
audited, and an overall score of 4.6 out of 5 was given.
In conclusion, while we acknowledge the compliance
burden that FCA requirements place on repairers -
especially those that are not directly regulated - we
emphasise the importance of aligning with insurers for
approved repairers. Compliance should be considered
an integral part of this collaboration and reflected in
compensation methods. A cooperative approach that
recognises the mutual benefits of compliance can lead
to fair compensation, increased transparency, and a
better consumer experience. With our Code of Conduct
and arbitration services, we
can uphold the principles
of professionalism and
consumer protection in the
automotive repair industry.
Dr Matthew Connell
Title: Director, Policy and Public Affairs
Association: Chartered Insurance Institute
(CII)
Is the insurance
sector ready for the
Consumer Duty?
In September, the Financial Conduct
Authority (FCA) published a ‘Dear CEO’
letter for insurers that covered a wide
range of outstanding issues, including
speed of claims, treatment of existing
customers, and vulnerability.
Our tracking of public opinion over the last four years
has told us that consumers also take these issues
seriously.
Much of our research shows that insurers and
brokers are performing solidly against key indicators,
such as treating customers with respect during the
claims process, communication, price, and quality of
product. There is room for improvement in all of these
categories, but most customers are satisfied with the
service they are getting.
However, consumers still don’t believe that they
are getting a fair deal on loyalty, despite FCA rules
introduced last year designed to ensure that new and
existing customers are given equal treatment.
So, what do insurers need to do to make sure they are
delivering the right outcomes for the overwhelming
majority of consumers?
Our research findings show three key themes:
• The cost-of-living crisis has created much higher
expectations around speed of claims. Insurers
have largely risen to the challenge, gaining higher
performance ratings from most customers. However,
any slip in performance means that customers are
more likely to complain.
• Existing customers want to see solid evidence that
they are being treated in the same way as new
customers. This could take the form of genuine
rewards for loyalty.
• Consumers want to be treated as individuals when
it comes to assessing risk, complaints and flexibility
around claims and cover.
Getting these three
elements right will boost
insurers’ performance
against the Consumer
Duty from a solid pass
to a stellar grade, making
the next ‘Dear CEO’ letter
a much more comfortable
read.
MODERN INSURANCE | 37