ABI praises OFT motor referral and calls for more regulation

The ABI has praised the Office of Fair Trading’s (OFT’s) decision to refer the private motor insurance market to the Competition Commission, and added that wider insurer regulation is needed to keep costs down.

ABI director of general insurance Nick Starling (pictured) said: “The OFT found what insurers have known for years - that when a customer has a crash that is their fault, the insurer has little control over the cost of the subsequent claim.

“For too long insurers have faced inflated rates for credit hire cars and excessive hire periods which have led to higher insurance premiums for customers.

“Regulation of all players in the market to tackle excessive costs is needed, and we look forward to working with the Competition Commission to bring much needed reforms to the market that will, in turn, result in lower car insurance premiums for consumers.”