Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether his Department has had recent discussions with the Competition and Market Authority on the use of exclusive jurisdiction clauses by insurance companies.

Insurers make commercial decisions about the terms on which they will offer cover following an assessment of the relevant risks. The Government does not intend to intervene in these commercial decisions by insurers as this could damage competition in the market.

However, insurers must treat customers fairly and are required to do so under the Financial Conduct Authority’s (FCA) rules. The FCA is an independent body responsible for regulating and supervising the financial services industry, including insurance firms. The FCA, as the independent regulator, also has a statutory objective to promote effective competition in the interests of consumers. The FCA work towards that objective, as far as the work is compatible with advancing their other objectives.