Accident Management and Non Fault Car Hire Regulation
Accident Management, Non Fault Car Hire and Claims
Accident Management (CMC's) Non Fault Car Hire (Credit Hire Companies) and Insurance Claims Companies have a change on the horizon.
New FCA Regulation For Accident Management Companies
Since 2008 to date, accident management companies have been regulated by the Ministry of Justice, under the regulation of claim management companies. However following UK government the 2016 spring budget announced by Mr Osborne, the future regulator will be FCA.
This due to the business sectors the accident management companies operate in are often financial based companies and regulated by the FCA.
In an attempt to enhance regulation by requiring higher standards to obtain FCA regulated status, this will mean not only will the accident management companies themselves have to achieve a higher standard to be awarded their FCA license, but the individuals within the company must be competent and suitable for there position.
The FCA will have greater powers to ensure companies adhere to regulation, and greater resources to investigate any problem companies not following the rules. This will include the directors and their staff are now going to that they are personally responsible for the companies actions.
FCA Regulation Of Accident Management Companies A Great Step Forwards
This should be great step forwards for the accident management industry, and give consumers confidence in the companies they appoint to provide service. Knowing the companies that consumers appoint will be of good standard and have the ability to provide the required service level should in time improve the industry as a whole.
The Accident Management companies or their directors that are not to standard will find it hard to gain there FCA regulated status, so hopefully the end may be finally here for those unprofessional companies that damage the reputation on an industry that should have always been customer focused, providing cost effective claim solutions to both their customers and the insurers alike.
Many Good Companies will already have FCA regulation, such companies will have to apply to expand their current FCA approved sectors once the regulated sector is added to the FCA authority. Having said all this, it's only good as long as the government don't put the 60K plus people employed in the sector out of work by following the proposals announce in the 2015 autumn statement (effectively taking away the publics right to access to justice) Time will tell on that subject... Either way the FCA regulation is step in the right direction.
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