As insurance premiums continue to rise, the OFT have called for the collection of evidence to explain why this is the case.
Recently reports have been received of escalating costs in regards to UK private motor insurance companies and OFT are requesting evidence to help substantiate the claims, with a view to possibly implementing improvements in how the market works.
It has been reported that car insurance premiums for annual comprehensive policies in the UK have risen by up to 40 per cent for the yearly period ending in March 2011.
The OFT is looking to establish all pertinent facts and reasons for the increase, as well as the posibility of the existence of customer or competitive issues which may need addressing to improve how the market functions.
A part of the OFT’s work will involve examination of reports that insurance premiums for cars in Northern Ireland are notably higher than for the rest of the UK, to ascertain the reasons for any differences.
The OFT is looking for information from a host of sources, including insurers, with regards to the private vehicle insurance market that could give rise to customer or competition issues.
Factors which could be affecting the market include the use of panels of approved repair companies by insurance firms, the supply of credit hire alternate vehicles for drivers who are involved in accidents which aren’t their fault, the additional products insurance companies sell supplementary to motor insurance cover and the role price comparison sites play.
Work will continue between the OFT and the FSA, the Ministry of Justice as well as other government departments with regards to its work. During the next five weeks evidence will be gathered from several interested parties and the findings published this December.
Whether it is necessary for the OFT to conduct further work in this particular area will be dependant on the evidence gathered.