Question to the HM Treasury:

To ask His Majesty's Government what discussions they have with the Competition and Markets Authority on the recent increases in car insurance premiums and access to car insurance for motorists on lower incomes.

Treasury Ministers and officials have regular meetings with a wide variety of organisations in the public and private sectors, including the financial services regulators, on an ongoing basis.

The Government does not prescribe the terms, conditions or price that insurance companies set when offering insurance. Insurers make commercial decisions about the pricing of insurance following their assessment of the relevant risks. The Government does not intervene in these decisions as this could damage competition in the market.

The Financial Conduct Authority (FCA) is the independent regulator responsible for supervising the insurance industry. Alongside the Competition and Markets Authority, the FCA can enforce against breaches of competition law for the provision of financial services.

The FCA also requires firms to ensure their products offer fair value (i.e. if the price a consumer pays for a product or service is reasonable compared to the overall benefits they can expect to receive). The FCA has been clear that it will be monitoring firms to ensure they are providing products that are fair value, and, where necessary, it will take action.