The Competition and Markets Authority has published a draft order setting out how changes resulting from its investigation into private motor insurance will be introduced.
In September, the Competition and Markets Authority (CMA) published its final report into private motor insurance which said that it would:
- ban agreements between price comparison websites and insurers which stop insurers from making their products available more cheaply on other online platforms
- ensure there was better information for consumers on the costs and benefits of no-claims bonus protection
This followed the CMA’s conclusions that:
- some price parity clauses in contracts between price comparison websites and motor insurers prohibit insurers from making their products available more cheaply on other online platforms – restricting competition and leading to higher car insurance premiums overall
- the limited provision of information in the sale of motor insurance add-on products to consumers makes it difficult for consumers to compare the costs and benefits of these products, with the sale of no-claims bonus protection giving rise to particular concerns
The draft order provides detailed information on how these changes are to be introduced and monitored. The CMA is inviting comments on the draft until 6 February 2015 and will look to publish the final order in March.