Prestige Underwriting Response to FCA Announcement on Motor Insurance Compensation

Prestige Underwriting welcomes the recent announcement from the FCA that over 270,000 motorists will receive compensation following reforms in how insurers treat assumed pre-existing damage and claims deductions. This is a strong step towards fairness and transparency in motor insurance claims, and essential for restoring confidence in the market.

The FCA’s findings underscore issues that are especially acute in the non-standard motor insurance market, where risks are already higher, and valuation or claims dampening practices can have disproportionate consequences for policyholders.

“This announcement reaffirms what we see every day in the non-standard space: policyholders often bear the brunt of generic assumptions or blanket depreciation. When vehicles are modified, imported, performance or contested risk models, or when drivers have past convictions – all part of non-standard motor policies – customers deserve valuations that reflect the reality of their vehicle, not assumptions which unfairly penalise them.

“At Prestige Underwriting, we are committed to ensuring our non-standard motor & van product book is both rigorous and fair. We believe in clear, evidence-based assessments; transparent communication; and underwriting practices that understand the unique characteristics of non-standard risks rather than using short-hand approximations.

“We applaud the FCA’s decision. It sends a clear signal:  we all must elevate standards, not just for standard policies, but especially where risks are complex. Non-standard customers must not be an afterthought but must be properly protected.”

Prestige Underwriting is a specialist MGA with a long-standing focus on non-standard and niche risks in Property and Motor. The company partners with a network of more than 1,300 brokers and strategic partners across the UK and Ireland, trading in Great Britain, Northern Ireland and the Republic of Ireland. Prestige Underwriting is part of the Prestige Insurance Holdings Group.