Insurance comparison site ComparetheMarket has been issued with a “statement of objections” by the Competition and Markets Authority (CMA) after an investigation found that clauses in many of ComparetheMarket’s contracts with home insurers break competition law and could lead to higher premiums.
The CMA has provisionally found that ComparetheMarket’s so-called “most favored nation” clauses, which prevent home insurers from quoting lower prices on rival comparison sites and other distribution channels, could lead to customers missing out on cheaper premiums.
According to the CMA, the clauses block fair market competition and also make it more likely that insurance companies have to pay higher commission rates to comparison sites, with the extra costs potentially impacting end-consumers.
Full Content: Insurance Age
