Motor dealers have been warned they could lose revenue from selling insurance unless they register to abide by new regulations from October 15 (formally September 1).
The General Insurance Standards Council (GISC) has been set up as watchdog for the industry. Its brief is to make sure retail buyers and commercial customers (those buying insurance for businesses) are dealt with fairly.
Concern is mounting that dealers are unclear about the rules and could lose out financially. Automotive Management and Sewells Information & Research are holding a conference this month, in conjunction with the Finance and Leasing Association, to explain the regulations.
Martin Hall, FLA director general, who will chair the conference, said: “We believe many dealers are unclear about new regulations which will affect all their businesses.
“The rules come into effect the month after next and it is in the interest of dealers to spend a day listening to experts explaining the implication of them.”
A spokeswoman for GISC said: “Dealers who sell or advise customers on warranties, loan payment protection and car insurance need to know about these rules. Otherwise, they might be unable to continue with this part of their business and so lose a valuable source of income.”
She said some of the rules applied whether dealers sold payment protection for loans or car insurance, or only advised customers.
“The regulations are necessary because there has never been a greater number or variety of organisations selling insurance to consumers,” she said.
“Thousands of these businesses are unregulated and a few rely on this to conceal incompetence and poor sales practices.”
Chris Woodburn, GISC chief executive, is one of the speaker at the conference.
Conference Call: be prepared
A conference - Be prepared for dealer regulation - will be staged on July 26 by Automotive Management and Sewells Information and Research in partnership with the Finance & Leasing Association.
Venue: Birmingham International Convention Centre
Prices: £99 for dealers, £149 for other delegates (both plus VAT)
Booking and information: Sue White, Emap Automotive, telephone 01733 468272 or email.