Press release: ComparetheMarket home insurance deals could deny people better prices

MoD_RSS

War Hero
The Competition and Markets Authority (CMA) has investigated clauses used by the comparison site in its contracts which stop home insurers from quoting lower prices on rival sites and other channels.

After reviewing the evidence, the CMA has provisionally found that these so-called “most favoured nation” clauses could be causing customers to miss out on better home insurance deals.

This is because the clauses prevent rival comparison sites and other channels from trying to win home insurance customers by offering cheaper prices than ComparetheMarket. It also means home insurance companies are more likely to pay higher commission rates to comparison sites with the extra costs potentially being passed on to customers.

As a result, people buying home insurance could be missing out on cheaper premiums.

Today, the CMA has issued ComparetheMarket a “statement of objections”, which sets out its provisional view that the contracts break competition law. The company will now have an opportunity to respond in detail and the CMA will consider the response and any further evidence before reaching a final decision.

CMA Chief Executive, Andrea Coscelli, said:


Over 20 million UK households have home insurance and more than 60% of new policies are found on price comparison sites. Therefore it’s crucial that these companies are able to offer customers their best possible deals.

Our investigation has provisionally found that ComparetheMarket has broken the law by preventing home insurers from offering lower prices elsewhere. This could result in people paying higher premiums than they need to.

This current investigation continues the CMA’s work in the sector following a market study into digital comparison tools. The study, which concluded in September 2017, showed that many people visit more than one comparison site as they shop around for the best deals. It also laid out clear guidelines for price comparison sites on how to use people’s personal data and how to display important information such as price and product description.

Further information can be found on the price comparison website page.

Notes to editors


  1. Whilst the CMA understands that, during its investigation, ComparetheMarket contacted home insurers in late 2017 with regards to non-enforcement of the clauses, it remains concerned that the effects of the clauses could continue.


  2. Chapter I of the Competition Act 1998 prohibits agreements and concerted practices between businesses which have as their object or effect the prevention, restriction or distortion of competition within the UK. Article 101(1) of the Treaty on the Functioning of the European Union (TFEU) covers equivalent anti-competitive agreements and concerted practices which may affect trade between EU member states.


  3. Any business found to have infringed these prohibitions can be fined up to 10% of its annual worldwide group turnover, taking into account a range of factors including the seriousness of the infringement and any mitigating or aggravating factors.


  4. The CMA is addressing the statement of Objections to BGL (Holdings) Limited, BGL Group Limited, BISL Limited (BISL), and Compare The Market Limited (together BGL). BGL operates a price comparison website under the domain names comparethemarket.com and comparethemeerkat.com.


  5. A statement of Objections gives addressees notice of a proposed infringement decision under the Competition Act 1998 and the equivalent EU law prohibitions. It is a provisional decision only and does not necessarily lead to an infringement decision. Addressees have the opportunity to make written and oral representations on the matters covered. Any such representations will be considered by the CMA before any final decision is made.


  6. The statement of objections will not be published. In accordance with the Guidance on the CMA’s investigation procedures in Competition Act 1998 cases: CMA8, third parties who may be able to materially assist the CMA’s assessment of the case have an opportunity to submit written representations and may request a non-confidential version of the statement of objections by contacting the CMA no later than 16 November 2018.


  7. More information on how to comply with competition law can be found on the competition law guidance page. The CMA currently has 15 open competition act investigations.


  8. Media queries should be directed to [email protected], or 020 3738 6460

Continue reading...
 
Thread starter Similar threads Forum Replies Date
MoD_RSS Statistical press release: Digest of UK Energy Statistics 2020 MoD News 0
MoD_RSS UK energy statistics: statistical press release - June 2020 MoD News 0
MoD_RSS UK energy statistics: statistical press release - March 2020 MoD News 0
MoD_RSS FCO press release: Change of Her Majesty’s Ambassador to Morocco - September 2020 MoD News 0
MoD_RSS FCO press release: Change of British High Commissioner to India - Spring 2020 MoD News 0
MoD_RSS FCO press release: Change of Her Majesty’s Ambassador to the Republic of Niger - March 2020 MoD News 0
MoD_RSS FCO press release: Change of British High Commissioner to Tonga - February 2020 MoD News 0
MoD_RSS Press Release: UKin...Pavia MoD News 0
MoD_RSS UK energy statistics: statistical press release - December 2019 MoD News 0
MoD_RSS UK energy statistics: statistical press release - September 2019 MoD News 0
MoD_RSS Statistical press release: Digest of UK Energy Statistics 2019 MoD News 0
MoD_RSS Press release: Traineeships help young people to access jobs and further study MoD News 0
MoD_RSS Press release: UK House Price Index for April 2019 MoD News 0
MoD_RSS Press release: Insurance fraud lands boss 12-year bankruptcy restrictions MoD News 0
MoD_RSS Press release: Broad new measures to ensure small businesses get paid on time MoD News 0
MoD_RSS Press release: Young engineer Ahmed takes national title MoD News 0
MoD_RSS Press release: PM Theresa May: we will end UK contribution to climate change by 2050 MoD News 0
MoD_RSS Press release: Rural sports clubs, schools and churches to go green thanks to £10 million Clean Energy Fund MoD News 0
MoD_RSS Press release: Thousands of farmers in stewardship agreements to be paid in July MoD News 0
MoD_RSS Press release: UK and Colombia mark new climate partnership with £8.5 million investment MoD News 0
MoD_RSS Press release: Record number of schoolgirls make digital waves but women still under-represented in the cyber security sector MoD News 0
MoD_RSS Press release: Joint Intelligence Committee Chair appointed: Sir Simon Gass MoD News 0
MoD_RSS Press release: UK and Indonesia agree to deepen partnership MoD News 0
MoD_RSS Press release: Big wins for British businesses as Vice Premier Hu Chunhua visits MoD News 0
MoD_RSS Press release: Lord Ahmad visits Bosnia and Herzegovina to mark the UN’s Day for Elimination of Sexual Violence in Conflict MoD News 0
MoD_RSS Press release: UK aid funds world’s biggest educational technology research project MoD News 0
MoD_RSS Press release: New Chair appointed to the Royal Botanic Gardens Kew Board MoD News 0
MoD_RSS Press release: Suppliers of antidepressants accused of illegal anti-competitive conduct MoD News 0
MoD_RSS Press release: Change of Her Majesty’s Ambassador to Sweden - August 2019 MoD News 0
MoD_RSS Press release: New housing statistics show increase in affordable homes MoD News 0
MoD_RSS Press release: Israeli space tech firm hiSky expands to the UK MoD News 0
MoD_RSS Press release: New powers to fine firms that exploit consumer loyalty MoD News 0
MoD_RSS Press release: Review finds family ties 'utterly indispensable' to rehabilitation of female offenders MoD News 0
MoD_RSS Press release: Education Secretary confirms T Level roll-out from September 2020 MoD News 0
MoD_RSS Press release: PM and Chancellor meeting with Chinese Vice Premier Hu: 17 June 2019 MoD News 0
MoD_RSS Press release: £230M boost for British beef as China agrees market access MoD News 0
MoD_RSS Press release: APPOINTMENTS TO THE EQUALITY COMMISSION FOR NORTHERN IRELAND MoD News 0
MoD_RSS Press release: Measures to end unequal mental health treatment kickstarted by PM MoD News 0
MoD_RSS Press release: APPOINTMENTS TO THE EQUALITY COMMISSION FOR NORTHERN IRELAND MoD News 0
MoD_RSS Press release: Big wins for British businesses as Vice Premier Hu Chunhua visits MoD News 0
MoD_RSS Press release: Lift off for new investment in UK SMEs to develop new aerospace technology MoD News 0
MoD_RSS Press release: Lord Ahmad visits Serbia to promote Preventing Sexual Violence in Conflict campaign MoD News 0
MoD_RSS Press release: PM's meeting with the President of Afghanistan: 17 June 2019 MoD News 0
MoD_RSS Press release: PM's meeting with the President of Colombia: 17 June 2019 MoD News 0
MoD_RSS Press release: Northern healthcare firms target new opportunities in Africa MoD News 0
MoD_RSS Press release: £230M boost for British beef as China agrees market access MoD News 0
MoD_RSS Press release: One of a kind Victorian ceramic crab at risk of export MoD News 0
MoD_RSS Press release: Buckingham Group Contracting appointed to deliver Chipping Warden relief road MoD News 0
MoD_RSS Press release: Updated plans for Stockbury roundabout transformation revealed MoD News 0
MoD_RSS Press release: Exmouth tidal defence scheme exhibition - save the date MoD News 0
Similar threads


















































Latest Threads

New Posts

Top