A PYMNTS Company

UK: Car insurance needs a makeover, CMA says

By  |  June 12, 2014

The UK’s Competition and Markets Authority is reportedly looking to overhaul the car insurance industry to lower prices after an investigation found unnecessary costs for customers.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    According to reports, the CMA suggested placing a cap on replacement car charges sent to the insurer for the driver at fault of an accident; these costs, the regulator said, lead to between $120 million and $300 million a year in charges for customers.

    The CMA also suggested a ban on “price parity,” which allows insurers to strike agreements with websites to not offer lower prices elsewhere, according to reports.

    The CMA’s recommendations follow preliminary findings published last December by the former Competition Commission; the Commission found evidence that car insurance in the UK was too expensive due to complex claims processes, among other factors.

    Full content: Reuters

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.