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Financial Conduct Authority GI Value Measures 2024


The Financial Conduct Authority is the controlling body of all financial services. They have many different roles, but the one we are looking at in-depth concerns their GI Value Measures. 


The FCA is pedantic about ensuring data is correct, as we all should be, so they have been gathering information about how policies perform for all consumers. 


( We think as part of their commitment to ensure that consumers get good value for money and good outcomes from any insurance policy they buy ) 


Their latest report, which used data from 01/01/2022 - 31/01/22  

contained lots of data; however, naturally, we concentrated on Gap Insurance, the key areas we looked at.


  • How many Gap Insurance claims are paid?
  • How many claims are not paid?
  • How many policies are there?


Ultimately, consumer duty means that we must regularly test that our policies offer value for money and ensure that our policyholder's claims are paid per the terms and conditions of their policies.


The FCA report highlighted some fascinating points regarding the underwriters we use, and you will be pleased to know that Acasta European Insurance Company has 


  • A 95-100% Gap Insurance claims acceptance rate. ( this was the highest percentile they showed.) 
  • There is a 45-50% claims rate on cosmetic insurance, for example, Smart Care.


Industry-wide, they also showed that.


  • There was an average of 1851075 stand-alone gap insurance policies in force. 
  • There was a total of £233,690,641.00 worth of gap insurance policy premiums bought.  
  •  You are six times less likely to complain about your policy when purchasing it independently of the vehicle sale.
  • There are 3.25 times more policies sold stand-alone ( not part of the sale of the vehicle ) 


From this, we drew the following conclusions.


The reduced number of policies being sold as part of the sales process illustrates that the FCA's four-day rule of offering gap insurance works and allows consumers to shop around and compare levels of cover and prices.


The difference in rates of complaints shows that when consumers research and actively source their policy, they are more empowered to make informed choices and are therefore less likely to complain as they already know precisely what their gap insurance policy will and will not cover. 


At Total Loss Gap, we want you to have what we consider to be market-leading policies and the peace of mind of knowing that should you ever need to claim; it will be dealt with correctly.


We think that the FCA's findings illustrate that when you buy a policy which Acasta underwrites, you are in safe hands, and the claims acceptance rates show this in black and white.


If you want to know more about the work that the FCA do, how they do it and equally as important, why they do it, why not visit their website?