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ABI: GPAPs initiative is having a positive impact two years on

Jessica Bird

July 10, 2020

The Guiding Principles and Action Points for General Insurance Pricing (GPAPs) initiative, launched in May 2018 to help improve outcomes for longstanding customers, is having a positive impact according to the review of its implementation published by the Association of British Insurers (ABI).

13 of the 18 surveyed companies have gone further than Financial Conduct Authority (FCA) requirements on renewal pricing, and are now alerting new customers that their premium only applies for the first year, and that renewal premiums may be higher.

The GPAPs initiative was launched by the ABI and British Insurance Brokers Association (BIBA) to help address excessive price differences between new customer premiums and subsequent renewal premiums.

Commitments include: prioritising better outcomes for longstanding customers at company board or senior management level; clearly communicating to customers that renewal premiums may be higher; reviewing their approach to customers on their books for five or more years; and reviewing outcomes for vulnerable customers.

The ABI’s survey encompassed insurers covering around 85% of the gross written premium for both the motor and home markets, and a qualitative data collection (for intervention volume and value) covering 76% of the motor and property market.

All firms surveyed had incorporated the GPAPs into their processes for determining renewal premiums and made the issue a board or executive-level priority.

All firms had implemented a review process on renewal pricing, with 94% (by gross written premium) having a specific focus on customers who have been with them for five or more years.

Firms covering 94% of gross written premiums had implemented processes to identify and review outcomes for vulnerable customers at renewal, while the remaining firms have plans to do so.

In total, there were over 8.5 million pricing interventions across motor and home insurance over the 20 months included, worth a total value of £641m.

Individual firms reported an average saving per intervention ranging between £40 and £150 for the majority of interventions.

James Dalton, director, general insurance policy at the ABI, said: “This review shows how positively insurers have responded to implementing the Guiding Principles and Action Points.

“The number of insurer interventions and range of average savings are benefitting millions of customers.

“There is a clear commitment from the industry to continue to deliver on the Principles, as their benefits to customers should grow over time.

“There remains more to do, and we will continue to work with the FCA in its general insurance pricing review.”


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