Guaranteed asset protection insurance: A competition remedy

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  • FCA

In July 2014, the FCA confirmed findings from the general insurance add-ons market study that competition is not effective where products are sold as an add-on and that markets for these products are broadly not working for consumers. We proposed four remedies, one of which relates specifically to the GAP market.

The objectives for the proposals set out in this paper are to reduce the advantage enjoyed by the add-on distributor and to empower customers to make informed and active decisions on whether to buy GAP insurance and, if so, from where.