“The Competition Commission’s provisional findings may bring some Christmas cheer to motorists as the possible remedies proposed would be likely to reduce the cost of claims and therefore premiums for consumers.
“However in terms of the overall impact on motor insurance pricing, it is our view that competitive market forces and technological change will continue to exert greater pressure on premiums than these proposed reforms. We have already seen how powerful these forces are, evidenced by the average premium reductions we have witnessed in the market during 2013 (Confused.com/Towers Watson Car Insurance Price Index in October 2013 quoted that the ‘Average cost of comprehensive car insurance decreased by 13.9% yr-on-yr’).
“We welcome the fact that the findings are not purely focused on motor insurance pricing. They are also seeking to improve the value of motor insurance for customers, particularly with the remedies focused on changing inefficient claims practices.
“It is also comforting to see alignment in the regulatory agenda; as the Competition Commission’s findings are consistent with the areas that the Financial Conduct Authority (FCA) are focusing on, as well as with the recently implemented Legal Aid, Sentencing and Punishment of Offenders Act reforms.”
For further information please contact:
Margot Cowhig, KPMG Corporate Communications
Tel: 0207 694 4246 Mobile: 07920 274856: email@example.com
KPMG Press Office: 0207 694 8773
Notes to editors:
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with approximately 11,500 partners and staff. The UK firm recorded a turnover of £1.8 billion in the year ended September 2013. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 155,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.