The National Body Repair Association (NBRA) has put its support behind the Financia Conduct Authority’s (FCA) efforts to address the concerning trend of undervaluation of total loss vehicles by certain motor insurance companies. Martyn Rowley, Executive Director of NBRA, emphasised the importance of fair practices within insurance considering these findings.
The FCA’s investigation has unearthed a troubling pattern wherein some insurance firms persist in undervaluing written-off or stolen vehicles despite various warnings against such practices. Adjustments to valuations are often only prompted by customer complaints, leaving many policyholders short-changed in their claim’s settlements.
Rowley expressed empathy towards vehicle owners who suffer from undervaluation during the claims process, but he also highlighted the significant repercussions faced by repairers and the industry at large. Repairers, particularly those associated with Accident Repair Centres, frequently encounter delays and challenges in settling claims due to discrepancies in valuations.
Delays not only disrupt the repair workflow but also strain resources, especially concerning the provision of extended courtesy car coverage, where timely resolution is crucial. Rowley stressed the necessity for motor insurers to take proactive measures to streamline the claims process, benefiting both policyholders and repairers.
NBRA echoed the FCA’s concerns regarding instances where firms offer settlements below the true value of the vehicles, calling for urgent intervention and reform in the insurance industry. Despite prior warnings, undervaluation practices persist, emphasising the need for swift action to ensure fairness and transparency in claims settlements.
“We applaud the FCA for taking action,” Rowley stated, “and call upon all insurance industry stakeholders to prioritise fairness and transparency in claims settlements.” The NBRA reaffirmed its commitment to advocating for its members’ interests and ensuring equitable treatment throughout the claims process.
NBRA’s endorsement of the FCA’s initiative underscores the necessity for comprehensive reform within the insurance sector to address the systemic issues of undervaluation and uphold fairness for all stakeholders involved.
