The Office for Fair Trading has launched a follow-up review of liability insurance markets and the ‘after the event' insurance (ATE) sector today.
In its June 2003 report on liability insurance, the OFT said it would keep a watchful eye on liability insurance markets and would further scrutinise premium levels.
The OFT said the review would examine:
·price developments
·what current costs insurers are taking into account when pricing current policies
·what impact initiatives adopted by insurers are having across the liability insurance markets.
·whether there are any business sectors that are finding it difficult to obtain cover.
The OFT said it would contact stakeholders for information on levels of premiums as well as seeking to obtain independent data on premium levels.
It also said research into the ATE market would be carried out to assess whether ATE premiums were contributing to the rise of liability insurance premiums.
The OFT said it would be aiming to gain an understanding of the structure of this market.
