The FSA has confirmed that as of November 11 – the last official figures available – only 9,559 applications for authorisation had been received. Of these 5,151 registrations were from the primary insurance market and 4,408 from the secondary insurance market, which includes dealers.
Tony Worthy, Compliancy Services managing director, says: “There is still a significant sector of the automotive industry which is not represented here and therefore is at risk of losing a valuable revenue stream. With less than nine weeks to go before the regulations come in force, we are urging businesses to prepare for the new rulings.
“What the figures are demonstrating is that there is a serious lack of buy in from the motor industry and therefore come January the implications will hit the sector on a huge scale. There is little time left and the options for motor retailers are becoming more and more limited. However, it is still not too late for businesses to protect the vital revenue stream insurance mediation can bring.
He claims that for a business to become compliant the process can take from two weeks to two months, depending on the individual needs of the business.
"A good starting point for motor retailers would be to identify where they are in preparation for the new guidelines," Worthy says. "At Compliancy Services we can offer motor retailers a simple and quick route to assess where they are in preparation for the new rulings."
Retailers can access a free online compliancy health check by completing a simple questionnaire (Fact Find) which can be found at www.compliancy-services.co.uk. Based on the information submitted on the assessment form, a specific action plan including costs to implement the procedures required is provided within 48 hours.