GTA2 talks reach important stage
5th June 2023Tweet
Discussions between the credit hire industry and insurers on the scope of a revised GTA, a voluntary protocol which removes friction in settling credit hire claims, are now reaching an important stage.
Anthony Hughes, Chair of the Credit Hire Organisation (CHO) the credit hire trade body, said his members have received a “measured and helpful” response from motor insurers to a position paper on the way forward prepared by the CHO’s specialist GTA working group.
Anthony said that a refreshed GTA is needed to take account of the seismic changes in the motor claims market following both the pandemic and the war in Ukraine, both of which have contributed to unprecedented increases in the cost of motor claims during the last two years.
He said, “The GTA is a unique and valuable tool to ensure the smooth running of the credit hire claims market, and we maintain that it represents the best means of controlling the sector without recourse to regulation.
“But we have long argued that it needs to flex and adapt to better reflect market volatility, and finding a solution, or GTA2 if you like, has been top of our agenda for the last few months.”
He continued, “At its core, the major operational issues focus on hire rates and vehicles groupings. The insurers have proposed a new methodology and framework to capture vehicle groups, and acknowledge that both sides are closer to reaching an agreement on rates.”
He explained that there is still work to be done on governance, including the nature and scope and remit of an independent GTA chairperson, as well as further progress on dispute resolution, the removal of ambiguities in the GTA and data management.
He said: “We very much welcome the response from our insurer partners on the GTA review, and believe there is commitment from all sides to conclude the discussions with a revised GTA that is fit for purpose for the 2020s.
“We are seeking to arrange a meeting of the relevant parties at the end of June and will hope to update our members and interested parties in July.”
Anthony joined ILC for a podcast just last year, you can still listen here:Tweet
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