Article date: 12 June 2014
Andrew Morrish, Motor Claims Director for Aviva in the UK & Ireland, said:
“Aviva worked with the Competition and Markets Authority to help reduce the excessive costs that have added to consumers’ insurance premiums. We welcome today’s announcement from the CMA and the benefits that will be brought through a cap on the cost of credit hire vehicles. Likewise, we fully support the emphasis on providing better information for consumers who are making a claim.
“However, Aviva believes that there is additional cost that can be taken out of the system. We believe that the CMA have not tackled the fundamental issue of cost liability versus cost control. Notably absent is any meaningful reform covering non-fault vehicle repair, which leaves the door open for additional costs and referral fees to be added to the repair process. The at-fault insurer continues to have pay for these extra costs, despite having no control over how those costs are incurred. Ultimately, these costs impact customer premiums.
“Without control of repair costs and a ban on all referral fees, Aviva is concerned that costs may simply shift from one problem area to another, instead of being removed. With the intense focus on motor premiums and the pressure to continue their downward trend, we believe more can be done to reduce costs for the benefit of motorists’ premiums.“
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