GAP market reboots as four providers accept lower commission rates

The first four firms have re-entered the GAP (Guaranteed Asset Protection) market after two months in which this whole sector of motor insurance was put on pause by the FCA for not providing fair value.

By Neasa MacErlean

The hiatus in sales activity occurred after the regulator decided to act on data showing that only six per cent of customer premiums were going on claims, while as much as 70 per cent was taken in commission.