Six insurance companies and two IT software and service providers have agreed to change the way price information for motor insurance is shared following concerns that previous practices were violating competition laws. The Office of Fair Trading (OFT) said that the insurers shared price details about future motor insurance …
Toothless watchdog herp derp
It's nice to see that the scam that is insurance is being at least watched from a distance. It's a shame that these companies continue to extort money from individuals and refuse to pay it back when needed (e.g. in the event of a claim).
"The scam that is insurance"
Never had your house ransacked or your car destroyed, have you? Insurers pay out, it's just that they don't pay out if you don't play by the rules. ie:
Leave your front door open and get burgled - they're not paying out.
List yourself as the primary driver on your child's car and they have an accident while they're at uni - you're not getting a pay out.
OFT - anyone for tea ?
"In June 2009, the OFT received information suggesting that certain
arrangements between a large number of insurance companies operating
in the broker insurance market might be in breach of the Chapter I
prohibition of the Competition Act 1998 (the 'Act') and/or Article 101 of
the Treaty of the Functioning of the European Union ('TFEU')."
June 2009 to December 2011 - 2.5 years to get to a commitment not to break the law. Wow, that's powerful.
Of course, Sir Humphrey couldn't miss his appointments at his London club, the civil servants could not exceed their 37h weeks to act in the consumer interest any faster.
These insurance companies were exchanging information on future prices. Their punishment - forced to sign a piece of paper saying they won't do this again.
Thanks OFT for your quick, decisive and powerful work. Have a bonus.