But the trade body said the ban should have included wide most favoured nation clauses
Biba has welcomed the Competition and Market Authority’s (CMA’s) final decision to ban wide most favoured nation clauses (MFNs) but said the remedies should have gone further to ban the narrow MFNs.
Under the ban, insurers and brokers will be able to offer cheaper prices on alternative price comparison websites, but will still be restricted from offering cheaper premiums direct through their own websites.
Chief executive Steve White said that while the partial ban was a step in the right direction, the CMA should have gone further and banned all MFNs.
“We are pleased that the CMA listened to our concerns and are outlawing anti-competitive ‘wide’ most favoured nation parity clauses as these are detrimental to customers.
“However, this is not enough, if they wanted to do the right thing for customers then they should have gone further and ban what they call the ‘narrow’ clauses too which in our view are also anti-competitive”.