Costs of FSA compliance outweigh benefits for motor dealers, survey

Motor dealers that sell insurance are beginning to question the value of the insurance side of their business against the costs of regulation, according to the results of a survey by the Retail Motor Industry Federation (RMIF) recently. One year since the regulations were introduced, the survey estimated that the average annual cost of compliance totalled £4,600 per outlet while some 20% of dealers sell only £1,000 worth of insurance business each year and three-quarters of the survey make annual insurance sales of under £20,000.