AutoProtect clarifying the FCA ‘Ban’ on Opt-Out Insurance

Date: Fri 27th March 2015   |   Author: Vince Brand | Google+

AutoProtect fully supports the announcement by the FCA that it is to ban the practice of using opt-out tick boxes on any insurance products.

In welcoming the new announcement from the FCA we need to clarify that this is not a ban on add-on insurance products. Rather it is a ban on, what we consider to be, an unethical sales approach wherein customers could unknowingly purchase an insurance product if they did not tick an opt out box within sales documentation,” notes Mike Macaulay AutoProtect's - Head of Corporate Sales.

AutoProtect has long taken a leading stance on the value of adopting a customer-centric view of insurance products. Well in advance of FCA regulation, the business’ product portfolio was developed to achieve the vast majority of the standards that the regulator has mandated over the last year.

In announcing the shift required by all businesses in their approach to offering add-on insurance products, the FCA has issued a clear guideline encouraging firms to introduce add-on services early into the sales process. The key principle is that customers can then make an informed choice on the products that suit their circumstances.

The regulator clearly recognises that add-on insurance can provide real value to consumers. To deliver this, it is important that dealers develop clear processes and ensure customers know and understand the options available to them.  Macaulay closes noting’

To create the type of good outcome the FCA are seeking, there is a real place for making consumers aware of all the options that are available and letting them make an affirmative choice.

“What is certainly clear is that any dealer who still operates with an opt-out approach to any insurance needs to change and change now.”