UK: Car insurance needs a makeover, CMA says

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.

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

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