Cars: Insurance

(asked on 13th October 2023) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will launch a consumer review of the car insurance market for the purposes of understanding the (a) adequacy of levels of competition and (b) comparative pricing structures between companies.


Answered by
Andrew Griffith Portrait
Andrew Griffith
Minister of State (Department for Science, Innovation and Technology)
This question was answered on 19th October 2023

The motor insurance market has many providers offering a variety of insurance products to suit the needs of customers. The Financial Conduct Authority (FCA), as the independent regulator for financial services, has a statutory objective to promote competition in the interests of consumers, and, working closely with the Competition and Markets Authority, can enforce against breaches of competition law. The FCA have also introduced several reforms, including the Consumer Duty rules, to ensure consumers are treated fairly in regard to pricing.

Insurers make commercial decisions about the terms, conditions or price that they set when offering insurance, including motor insurance. The Government does not intervene in these commercial decisions by insurers as this could damage competition in the market.

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