The CMA has published for consultation a draft of the Private Motor Insurance Market Investigation Order 2015. This will address the adverse effects on competition identified by the CMA resulting from information asymmetries in relation to the sale of no-claims bonus protection insurance and wide most favoured nation (MFN) clauses in contracts between private motor insurance (PMI) providers and price comparison websites (PCW).
The draft Order, therefore, obliges PMI providers and PCWs to provide certain information when no-claims bonus protection is offered as an add-on to PMI products. It also bans wide MFN clauses and any actions by large PCWs that may have an equivalent anti-competitive effect. It also requires PMI providers and PCWs to provide compliance statements to the CMA. The draft Order is accompanied by a draft explanatory note. The CMA invites comments by February 6, 2015.