Motor Vehicles: Insurance

(asked on 16th November 2023) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether he has had discussions with the Competition and Markets Authority on helping ensure that rises in car insurance premiums do not disproportionately impact individuals with protected characteristics.


Answered by
Bim Afolami Portrait
Bim Afolami
This question was answered on 21st November 2023

Treasury ministers and officials have regular engagement with independent regulators, including the Competition and Markets Authority, the Financial Conduct Authority (FCA) and the Equality and Human Rights Commission (EHRC). As was the case with previous administrations, it is not the Government’s practice to provide details of all such meetings.

Insurers make commercial decisions about the terms on which they will offer cover following an assessment of the relevant risks. However, insurers must comply with relevant legislation and regulatory rules when pricing their products.

Under the Equality Act 2010 insurers are, with limited exceptions, prohibited from discriminating against consumers with protected characteristics. Enforcement powers under the Equality Act 2010 are the sole reserve of the EHRC. However, it is likely that a breach of the Equality Act will also be a breach of the FCA’s rules.

The FCA have also introduced new Consumer Duty rules, from 31 July 2023, to ensure firms are providing products that offer fair value (i.e. that the price a consumer pays for a product or service is reasonable compared to the overall benefits they can expect to receive).

The FCA can and does act in appropriate cases where firms are breaching its rules.

Reticulating Splines