The Competition and Markets Authority (CMA) conducted a review into the Private Motor insurance market, and from this review a number of recommendations have been proposed, including:
- a ban on agreements between price comparison websites and insurers which stop insurers from making their products available more cheaply on other online platforms
- better information for consumers on the costs and benefits of no-claims bonus protection
A direct impact on you will be the requirement for better information to be presented to consumers on the cost and benefit of NCD protection. The implication here is that the intermediary must be able to demonstrate that the consumer has been advised of the NCD step back rules for the presented insurance products.
What has SSP done?
SSP has been working with the CMA and insurers in order to further interpret the requirements. This has led to concern being raised by the market regarding the proposed introduction date of 1 September 2015. Insurers and software houses have raised concern at the expected level of impact on the insurance motor products, citing that potential changes to accommodate the ruling could take over a year to complete. A further consultation to recommend that the implementation date be moved to 1 August 2016 was carried out by the CMA and this closed on 9 March 2015.
What happens next?
SSP and insurers are now waiting to hear the outcome from this extended consultation. Once this has been completed and we have interpreted and validated these final recommendations and changes we will provide a further update.