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CMA reminder: private motor insurance brokers and insurers to submit returns by 1 February 2021

Link(s): https://www.fca.org.uk/firms/business-interruption-insurance#revisions

Context

The CMA has issued a reminder to private motor insurers and brokers about the requirement to submit a compliance report to the Competition and Markets Authority (CMA) by 1 February each year.  The obligation to report arose from the CMA’s Private Motor Insurance Market Investigation Order 2015, the full details of which can be found here: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/453475/Private_Motor_Insurance_Market_Investigation_Order_2015.pdf

 Key points to note

  • The CMA’s Order banned agreements between price comparison websites (PCWs) and insurers which stop insurers from making their products available more cheaply on other online platforms
  • The Order also ensured better information for consumers on the costs and benefits of no-claims bonus protection
  • The Order applies to private motor insurance contracts which cover risks relating to the use of privately-owned motor cars (excluding motorcycles)
  • The Order does not apply to commercial motor insurance
  • The template compliance statement and confirmation of the information to be submitted in relation to No Claims Bonus (NCB) can be found on page 19 of the Order
  • The CMA has provided an explanatory note to assist firm which can be found here: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/539984/pmi-order-explanatory-note.pdf
  • The information should be sent via email to PMI.Order@cma.gsi.gov.uk