The New Approach to GAP & RTI that is Fast Gaining Industry Attention
AutoProtect’s innovative approach to Guaranteed Asset Protection (GAP) insurance has been selected by FGA Capital UK Ltd for use across the Fiat, Abarth, Alfa Romeo, Jeep, Chrysler, Jaguar and Land Rover networks, supporting a strongly customer centric approach advocated by FGA CAPITAL to create long-term customer value.
AutoProtect has led the call for GAP and RTI products to embrace the ABI Good Practice Guidelines, which were developed in consultation with the FSA, SMMT and FLA. The guidelines, launched in September 2011, call for changes in the way in which GAP/RTI products are designed to ensure customer are treated fairly in line with the wider FSA approach to principled based regulation for general insurance products.
Whilst the ABI’s approach provides guidelines rather than strict regulation AutoProtect has been proactive in developing products that comply with the guidelines, and which FGA CAPITAL sees as the way to go moving forward in support of their commitment to customers for life. In line with the AutoProtect commitment to innovation, the brand new combined GAP / RTI programme for the FGA Capital network of dealers across the UK has been developed to be incorporated into the FGA CAPITAL finance system, ensuring multiple data entry is avoided, good for the dealer and smoothing the process for the customer.
Core to the design of the new FGA CAPITAL GAP / RTI insurance is a customer entitlement to cancel a policy mid-term and obtain a refund.
Cancellation changes are far from the only innovation. Customers can now transfer the balance of a policy to a new car, and top up the policy as required ensuring continuity of cover from one car to the next and in the spirit of absolute transparency, plain English has replaced insurance jargon in the policy documentation. Finally, the whole claims process has been simplified to make things quick and easy for the customer at what is likely to be a difficult time and where customer retention presents a very real opportunity. Throughout the development programme, the goal has been to make it easier for customers to buy a product that suits their needs from their supplying dealer
Commenting on the new development, which goes live on March 1st Nigel Daniel Insurance Manager at FGA Capital observed; “The introduction of the ABI’s Good Practice Guides for GAP Insurance has presented the opportunity to review our insurance offering. In doing so, we have appointed AutoProtect, with whom we already have experience, having worked with them to develop and market our SMART insurance programme; which is proving very successful for dealers. AutoProtect has many years of experience in the GAP area of business, with a number of major dealer groups included in their portfolio. Their approach to embracing regulation and best practice in a manner that is both customer and dealer centric impressed us and we are looking forward to a long term relationship with them”.
GAP insurance has firmly established itself as a key product in the showroom. Having a product that is fair to the customer in the spirit of FSA regulation is vital to protect the long-term reputation of dealers and manufacturers, thereby avoiding the type of reputational and financial damage that has been incurred by PPI.
Mike Macaulay, Corporate Development Manager at AutoProtect observes;
“Whilst the ABI Guidelines are voluntary, I think it is important in today’s increasingly compliance and customer focused environment to be positive about embracing change that places customer benefit at the heart of product development. I believe it is important that as an industry we are proactive in adopting an initiative that, if not embraced, could result in wider legal/regulatory action. Our new product ensures that all dealers who work with FGA Capital are able to promote a product that places the customer first, protecting the customers needs and protecting their GAP income all at the same time. It is a win win for all parties”.