Retail Motor Law (RML) has welcomed the provisional decision by the Office of Fair Trading (OFT) to refer the private motor insurance market to the Competition Commission. In December 2011, the OFT announced it was launching a market study into private motor insurance in the UK in order to establish ‘the facts and reasons behind recent reported increases in private motor insurance premiums’.
It has just reported ‘evidence that insurers compete in a dysfunctional way that may push up premiums for drivers by £225 million a year’. The full market study is available on the OFT website.
Andrew Moody, managing director of RML, commented, 'I applaud the OFT for choosing to refer this matter to the Competition Commission. It is the right decision given the shocking evidence and the move comes as no surprise to me. I recently spent two years compiling a report on what I saw as questionable practices within the UK vehicle refinishing industry, specifically the agreements that certain paint manufacturers and distributors enter into with insurance and accident management companies. It is hard to escape the conclusion that some major operators are throwing their weight around and inflating prices to the detriment of smaller companies and, ultimately, increasing costs to the motoring public via higher premiums.'
RML, owned and run by qualified mechanic, barrister and solicitor Andrew Moody, is based in Cambridgeshire and specialises in providing legal expertise for the UK automotive industry. www.retailmotorlaw.co.uk click here for RML