Insurer selects new distribution partner for Gap sales

Global specialty insurer Fortegra Europe Insurance has appointed add-on insurance provider Alps as its distribution partner for guaranteed asset protection (Gap) insurance.

The deal will see Alps offer an A-rated Gap product that is subject to a value-based price-cap.

It will also have several additional features, including up to £1,500 cover for dealer fitted accessories, £500 motor excess cover for each year of the policy and the ability to transfer the policy to a family member.

Customers will also be offered a hire vehicle for up to 30 days and a pro-rata cancellation policy refund.

Alps is also offering product training for all brokers intending to sell this new Gap product to clients.

Julian Tomlinson, owner and chairman at Alps, said: “Fortegra is a leader in the market, highly regarded for its innovative solutions, strict underwriting standards and outcome driven approach.

“It’s a partnership that will ensure policyholders receive truly high-value cover and consistently good outcomes.”

Gap market

Back in February 2024, the FCA said that 80% of the Gap market would be suspending sales after feeling that it was failing to provide fair value to some consumers.

The regulator later confirmed that it had sent further requests to the remaining firms to pause sales of Gap insurance, in a second tranche of engagement.

Several firms have now been allowed to recommence sales, with Fortegra being among them.

It selected Alps as its partner due to its market performance and technology-related capabilities.

Tomlinson said: “This is exciting news. Since the FCA paused Gap sales in February we’ve been inundated, on an almost daily basis, with calls from brokers asking when this vital protection product will be back.

“Gap is an important product for vehicle owners and we intend to ensure it stays that way.”