Probe into UK motor insurance market
The UK's motor insurance market was today facing an investigation by the Competition Commission after a report found the market was “dysfunctional” and pushed up premiums by £225m (€281m) a year.
The report by the Office of Fair Trading (OFT) found premiums paid by drivers are being ramped up because of referral fees and the fact that insurers of at-fault drivers have little control over the way in which repairs are carried out.
This dysfunctional system inflated the cost of providing replacement vehicles by an average of £560 (€701) a time, while the cost of repairs was £155 (€194) more.
