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CMA final report on private motor insurance ABI summary

The Competition and Markets Authority (CMA) has published its final report as part of the investigation into the private motor insurance market.

The CMA has decided:

  • In relation to the market for temporary replacement vehicles, although there is separation of cost control and cost liability that results in an adverse effect on competition, the CMA has been unable to find a remedy within their powers which is both effective and proportionate. As such, they are not moving forward with any remedy, including their proposed consumer information remedy
  • To recommend that the Financial Conduct Authority that it (i) consider whether insurers and brokers should be required to provide to price comparison website (PCWs) the prices of the add-ons they provide; and (ii) work with insurers, brokers and PCWs to consider how the descriptions of add-ons could be improved
  • To ban the use of wide Most Favoured Nation clauses in contracts been insurers and PCWs and to ban the behaviours of large PCWs which seek to replicate the anticompetitive effects of wide MFNs.

Head of Motor, James Dalton, commented on the CMA’s findings in a press statement.

Members can read a more in-depth summary of the findings (pdf 209kB).

Last updated 01/07/2016