The regulator has evaluated the impact of its changes to the sale of GAP insurance.
The FCA found that the regulatory changes have had a positive impact, with benefits to consumers of £26-£28m a year. A consumer survey showed that there is more awareness of GAP insurance and the decision to purchase is more likely now to be pre-planned, and consumers are more likely to shop around. This ties in with feedback we have received from FLA members.
However the regulator admits that the benefits did not meet its expectations, as add-on sales and prices had not decreased as much as expected.