Housing associations have realised the highly-taxed company car is no longer the cherished perk it was and are offering their staff car loans instead.
But this rising trend is likely to expose some of Britain's biggest social landlords to considerable risk exposure in the years to come.
Leading risk management advisor Farr has responded to this potential financial timebomb with a new product, Car Loan Protector. The product has been developed specifically for housing associations to protect against losses if employees default on their car loans.
Julia Tayler of Farr explained: “These loans could represent a considerable risk exposure if they are repayable over extended periods. Car Loan Protector has been developed as a new, cost effective solution to safeguard against risks associated with such loans.”
Farr is a division of FMW, the largest commercial insurance broker in Essex based in Chelmsford.