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Co-op Insurance responds to regulator criticism

Co-op Insurance responds to regulator criticism

Co-op Insurance responds to regulator criticism On Friday we told you how the Competition and Markets Authority (CMA) had outlined its “disappointment” in Co-Op Insurance (see CMA outlines ‘disappointment in Co-op Insurance’) – and now the insurer has issued its own reaction.

The regulator highlighted that around 1,000 private motor insurance providers are now offering better information on no-claims bonus protection to drivers after it issued an order one month ago. The order obliges all providers – brokers and insurers – to present existing and prospective customers with information on the costs and benefits of no-claims bonus protection: including what happens if claims are made.

However, it named and shamed Co-Op Insurance as the largest insurer yet to do so.

Now the insurer has reached out to Insurance Business UK with an official statement in response.
“At the Co-op Insurance we have made significant steps to improve transparency and respond to customer needs over the last year, becoming one of the first insurers to develop dedicated online tools to explain to customers where their money goes,” the statement reads.

“For 90% of our new business customers, we are fully compliant with this order.

“However we acknowledge that for a small proportion of customers we are currently unable to be fully compliant with the order. This relates to the provision of specific information on the price of individual customers’ protected no claims discounts. 

“In this interim period we will be making it clear to affected customers that we are currently unable to supply this information. Additionally for both oral and written offers, we will offer to provide an additional quote excluding no claims discount protection so that our customers can calculate the implied price should they wish.

“We are currently part way through a major transformation programme, which will see a full migration to new systems, allowing us to provide a best in class service to our members.   When the new system is in place, we will fully compliant with the Order.

“We remain committed to transparency and will be continuing to work and champion to improve this for our customers and members both now and in future.”

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CMA outlines “disappointment” in Co-op Insurance