Following on from the market investigation opened in January 2010 into the private motor insurance sector, the OFT has launched a consultation on a proposed amendment to the commitments offered by motor insurance companies to address concerns about the potential exchange of pricing data and the risk of price coordination between competitors, by subscription to an analysis tool.
As a result of its investigation, the OFT announced in January 2011 that it was minded to accept commitments as a means of addressing its concerns, and opened a consultation on draft commitments. The OFT has now indicated that it is inclined to accept an amendment to the draft commitments which would reduce the age of exchangeable data (using the insurers' analysis tool) from 36 months to 6 months. The OFT believes this shorter duration will promote competition by encouraging entry into the market by other competitors, particularly smaller competitors, by ensuring that a certain level of information remains available.
The consultation on the proposed amendment to the commitments closed on 28 October 2011.