The UK’s RSA and The Co-operative Insurance have announced a bilateral agreement to settle outstanding motor recoveries. RSA said it is “designed to remove frictional costs, limit the need for claims handlers to get involved and to speed up the payment process.”
Adrian Brown, RSA’s Chief Executive, UK and Western Europe, commented: “Our recent court victory proved that RSA’s repair model is legal; however, there remain industry wide issues that need to be addressed to reform the dysfunctional motor market. A comprehensive solution is essential. Along with being fully engaged with the Government, the OFT and Competition Commission we are working with others in the industry to address these issues.
“This agreement is the first in what I hope will be a series of agreements which will help to remove unnecessary costs and benefit our customers by speeding up claims settlement.”
The agreement will see RSA and The Co-operative Insurance “create dedicated positions to oversee the motor recovery process between the insurers, as well as introduce an escalation plan to solve any problems before they result in unnecessary litigation,” the bulletin explained.
David Neave, Managing Director of General Insurance at The Co-operative, added: “We have long recognized that there are costs in the system which don’t benefit honest motorists. Our new bilateral agreement is a transparent, workable model which we hope to see adopted by the wider market. Ultimately, we believe that if other players now pick up the gauntlet, as an industry we will reduce the cost of motor recoveries and make insurance more affordable for consumers.”
RSA is hopeful that other insurers will look to join discussions. Brown indicated: “The industry has a responsibility to explore every avenue to reduce costs and we invite any productive discussions we can have with our peers.”
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