The final requirements of the Competition and Markets Authority’s (CMA) Private Motor Insurance Order came into effect on the 1st August 2016. The measures are intended to boost competition and reduce premiums for drivers.
The order, which applies to all providers of private motor insurance (brokers and insurers):
- Gives better information on the costs and benefits of no-claims bonus protection (this comes into effect today)
- Bans agreements between price comparison websites and insurers which stop insurers from making their products available more cheaply on other online platforms (this came into effect in April 2015)
Alasdair Smith, Chairman of the Private Motor Insurance Investigation Group, said:
There are more than 25 million privately registered cars in the UK and these changes will benefit them by introducing more competition into the market and reducing premiums as well as providing better information for motorists.
Measures within the order have been phased in since it was made in March 2015 and we are generally satisfied with the co-operation of the insurance industry.
All private motor insurers (including brokers) are required to submit compliance reports to the CMA on 1st August, and then annually from 1st February next year. The CMA will be monitoring compliance to ensure that consumers benefit fully from the order’s provisions.