Study of the (Non-life) Insurance Market
The study
This study focused on motor insurance, employer’s liability insurance and public liability insurance.
We found that the persistence of high profits among insurance companies, combined with slow rates of entry and inefficiency, suggested that competition was not as vigorous as would be expected in a truly competitive market.
Recommendations and outcomes
We made 47 recommendations, focusing on three areas:
- Barriers to Entry: Our recommendations which have been put into action have increased the availability of information on costs and claims statistics. Accurate, timely and easily accessible information on claims helps insurers, including potential new insurers, to assess the insurance market.
- Ease of Switching: We recommended that companies providing liability insurance must issue a renewal notice at least 15 working days prior to the expiration of the insurance policy. This gives businesses time to shop around for lower quotes from rival insurers.
- Price Transparency: We publish and regularly update Cost Comparisons on a Range of Financial Products, including some insurance products. These surveys inform consumers and help them in negotiating with insurance companies.
