18 Nov 2014
What impact has compulsory IBGs had on the industry? These changes, as expected, have provoked a lot of debate, both in and outside of the industry.
The recent legislation changes that affected the provision of Insurance Backed Guarantees (IBGs) in the industry were a long time coming. These changes, as expected, have provoked a lot of debate, both in and outside of the industry.
This legislative change meant that, from 6 June 2014, an Insurance Backed Guarantee became a legal requirement that had to be given by the contractor with every installation, rather than simply being offered for all registered jobs.
This Insurance Backed Guarantee ensures that deposit protection is in place, that the work meets the most recent building regulations, and that any guarantees in place protect the homeowner should the company become insolvent.
Widely seen as a positive move, in the industry there were many that were unhappy to see further bureaucracy introduced. So five months on, what has the impact of compulsory IBGs been?
It’s still early days when it comes to seeing all of the effects of the change in legislation, but some issues have become apparent.
As a leading provider of IBGs, we’ve seen an increase in the amount of new installers coming to us and enquiring about how Insurance Backed Guarantees can act as a sales closing tool. All of our members were already offering these products and fully understood their importance.
What was particularly worrying was the number of installers that were not aware of the fact that this legislation was being implemented in the first place. According to research, around 80 per cent didn’t know about the statutory change in Insurance Backed Guarantee requirements: a staggering number of businesses.
From an installer’s perspective, adapting to the legislative changes is easy if they work together with an accredited provider such as the CPA. All they need to do is purchase an Insurance Backed Guarantee and they will be fully protecting their customers, and themselves.
Here at the CPA we have been offering IBGs and other installer support packages for over twenty one years. For many years, we have been calling for these changes and we’ve always maintained that IBGs should be mandatory. The CPA has been a leader in this market and we are now happy that government has adopted principles we had in place for over twenty years. Ultimately, whether it is deposit protection or IBGs, we are working with businesses to make these schemes work for them. Last year our members outperformed the market by an impressive 20 per cent as we equipped them the tools they needed to add value to their sales presentations.
Recently named by FENSA as one of the industry’s leading insurance providers, the CPA are committed to fighting for consumer rights. For more information about our services, please give us a call on 01462 850064, or send us an email.