Members of the GTA are looking for a new chair to oversee the implementation and operation of a revised agreement for the 2020s. The move comes as talks aimed at a new-look agreement continue to make progress. The GTA is a set of industry-agreed principles, rules and guidelines that insurers and credit hire companies voluntarily agree to, to manage replacement vehicle motor claims. The agreement has been the benchmark and basis for the operation of the UK credit hire sector since 1999, but there is industry consensus that revisions are required to take account of the challenging conditions in the motor claims market.
Subscribers to the GTA include many of the UK’s leading motor insurers and credit hire companies, and the operation of the GTA is overseen by a Technical Committee of experts from both sides. Many credit hire claims are handled by credit hire companies on behalf of insurer partners.
One of the key ‘asks’ during the renegotiation is the appointment of a senior, independent chair, to oversee the operation of the GTA including dispute resolution and in particular, mediation and negotiation to help the Technical Committee reach equitable decisions.
Commenting jointly on the move, Anthony Hughes, Chair and CEO of the Credit Hire Organisation (CHO), together with James Driscoll, senior claims manager at Aviva and Chair of the insurer Technical Committee, said:
“Agreement on the nature and scope of this important role has been a key element in our joint discussions during the past few weeks, and we’re pleased to announce that we have now an agreed remit and job role outline for a GTA Chair. We are keen to find an experienced individual to support members as the GTA enters a new era and upholds the principle that the GTA remains the most appropriate means of removing friction from credit hire, obviating the need for regulation.”
They explained that legal advice would be needed to understand how to create a decision making function where there is no agreement between the parties without breaching competition rules, which may require changes to the constitution of the GTA.
They added: “We have been impressed by the ‘can-do’ attitude from our members, and the willingness to find a consensus that enables the market to operate effectively while improving the claims journey for our (shared) customers.”
They concluded: “We are keen to hear from practitioners who feel they have something to offer our industry and are confident that the right candidate will help us ensure a revised agreement becomes an exemplar for a non-statutory approach to the smooth functioning of this historically challenging market.”
Anthony Hughes said a successful conclusion to the current round of negotiations would support the MoJ’s preference for self-regulation in the credit hire market.
He noted that in the MoJ’s response to Part Two of the Whiplash Consultation, ministers said that ‘the best approach would be to continue to work with the key stakeholders in this sector to monitor and improve the use of industry agreements, including the GTA.’ *
Anthony said:” “We are confident that agreement on a revised GTA will underscore that ministers are right to trust the industry to regulate itself effectively, and in the best interests of the customers we all serve.”