New review to assess insurer initiatives and the ATE market
The Office of Fair Trading (OFT) has launched another investigation into the liability insurance market, following on from its June 2003 report into the issue.The review will assess what impact insurer initiatives have had on the market, as well as carrying out research into the after-the-event (ATE) market for the first time.A spokeswoman for the OFT said the consultation period would end in late spring 2005, with the results expected fairly soon afterwards.Sources said the review was not expected, but Royal & SunAlliance technical manager, liability, Phil Bell said that insurers had little to worry about.Bell called on the government to have a "joined up approach" to employers' liability (EL) pricing, and to recognise that the new FSA capital requirements for a long term account would have to be taken into account when setting premium levels.The Engineering Employers Federation (EEF) applauded the review. It said the ABI's Making the Market Work initiative had had "little if any impact" on liability premiums for better managed companies. But the ABI rejected Booton's criticisms, with a spokesman saying that the ABI "never said it would revolutionise the situation".
The OFT's remit