Ban will not apply to sites with fewer than 300,000 annual sales
Price comparison sites with fewer than 300,000 annual sales will be exempt from the Competition and Markets Authority (CMA) price parity agreement ban under a recently published draft motor insurance order.
The CMA has moved to ban agreements between aggregators and insurance providers that prohibit insurers and brokers from offering policies cheaper elsewhere, but smaller aggregators will still be able to enter into so-called most favoured nation clauses (MFNs).
Biba executive director Graeme Trudgill said the exemption from the MFN ban for smaller sites is unfair, and would not result in the level playing field that the CMA was seeking with these new regulations.
“For a level playing field for the industry, [these requirements] should apply to anybody,” he said.