Nine insurers have until 6 June to respond to Competition Commission
Extended warranty insurers must work to a new minimum standard according to the the Competition Commission (CC) after it found a "complex monopoly situation" in the market.
In its proposal for reform of the sale of extended warranties for electrical goods, the CC will put nine named insurers - members of the monopoly group - under pressure to disclose everything to the consumer before sale.
The proposal highlights concerns over the existence of a "complex monopoly situation", regarding sales of extended warranties through insurers and uninsured high street outlets such as Dixons.
Allianz Cornhill, Aon Warranty, AXA Insurance, Domestic & General, Hitachi Credit Insurance, Landmark Insurance, Pinnacle, Retra Insurance Services and Royal & SunAlliance have until 6 June to submit their responses.
The standards will include disclosure of protection already provided by household insurance, key features of the policy and the protection offered if an insurer fails. Information on alternative insurers will also be displayed, as well as tables comparing prices.
ABI head of general insurance John Parker said that the reputation of the insurance industry wouldn't suffer too much, as there are distinctionsmade between the insured and non-insured parts of the market, noting that the CC seemed to recognise the difference between the two.
But the industry body wants all extended warranties and high street travel insurance products to be regulated under the FSA.
An Allianz Cornhill spokesman said: "We are currently studying the details of the proposal and cannot make a comment yet."
The CC has to report its final proposals to the Department of Trade & Industry by 1 July.