Groupama says RSA motor case could hike costs

Groupama claims director Darren Wills has warned that the RSA motor case ruling could raise costs for the industry.

Wills said: “Following this judgment the industry finds itself at another important crossroads. Over ten years on from the start of credit hire and referral fees, many in the market are looking back and wishing we had responded differently. This decision raises similar issues.

“We really must avoid the same sort of short-term thinking that focuses on perceived quick wins rather than considering the longer-term impact of increased costs for the market and our customers.

“The judgment also runs the risk of generating further layers of dispute and confusion, adding more frictional expense at a time when we should be exploring what we can do to reduce complexity and cost so as to help keep premiums low.”