Commercial lines insurer RSA and The Co-operative Insurance have signed a bilateral agreement to settle outstanding motor recoveries.
The deal is designed to remove frictional costs, limit the need for claims handlers to get involved and to speed up the payment process.
As per the deal, both the firms will create positions to oversee the motor recovery process between the insurers, as well as introduce an escalation plan to solve any problems before they result in unnecessary litigation.
RSA chief executive of UK and Western Europe Adrian Brown said that the company's recent court victory proved that its repair model is legal, however, there remain industry wide issues that need to be addressed to reform the dysfunctional motor market.
"A comprehensive solution is essential," Brown said.
"Along with being fully engaged with the Government, the OFT and Competition Commission we are working with others in the industry to address these issues."
