ABI stops short on voluntary premium finance cap as it sets out five principles

The Association of British Insurers has stopped short on a voluntary industry-led cap on premium finance as it set out five principles aimed at helping consumers manage the cost of paying-monthly for motor insurance.

The ABI director of regulation Charlotte Clark spoke to the Finance Treasury Committee last week and revealed the body had considered a voluntary cap for the industry.

She said: “There are very good competition reasons why you can’t do those sort of things which we understand having spoken to the regulator.”

Instead the trade body said members of the ABI have committed to new steps to try and manage the amount people paying monthly for their motor insurance are charged.

There are very good