Mind the GAP: MIM looks at the future of GAP Insurance in the UK

摘要

As with many types of insurance before it, Guaranteed Asset Protection (GAP Insurance) originated in the US and was originally designed to cover the financial shortfall on finance agreements and leases. For the past three decades, car dealerships, finance companies and motor manufacturers have sold various forms of GAP Insurance as an 'up-sell' when selling vehicles. However, in the wake of the well-publicised PPI debacle, the Financial Conduct Authority (FCA) has now set its sights on what it refers to as General Insurance 'add-ons' which include insurance products sold with cars or mobile phones.