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Daily Insurance Industry News
Wednesday 21st of November 2018
January 13, 2011

Seven insurers sign up to OFT data exchange limits

by Gill Montia

Story link: Seven insurers sign up to OFT data exchange limits

Seven insurers sign up to OFT data exchange limits Seven insurers sign up to OFT data exchange limits Seven insurers sign up to OFT data exchange limits Seven insurers sign up to OFT data exchange limits Seven insurers sign up to OFT data exchange limits

Seven insurance companies and two IT software and service providers have provisionally agreed to limit the data they exchange, following competition law concerns raised by the Office of Fair Trading (OFT).

Ageas, Aviva, AXA Insurance UK, Liverpool Victoria Friendly Society, RBS Insurance, RSA and Zurich, plus IT firms Experian and SSP, have all offered formal commitments to the watchdog.

The move follows an OFT investigation which identified an increased risk of price coordination among motor insurers using a market analysis tool from Experian, called Whatif? Private Motor.

According to the OFT: “The tool enabled insurers to access individualised and highly disaggregated pricing data for vast numbers of permutations of customer risks across most competing private motor insurers that sold through brokers.”

In addition, insurers were able to access information about their competitors’ future pricing intentions.

The insurers investigated are addressing the OFT’s concerns by giving formal commitments that they will no longer access each other’s pricing information using Whatif? Private Motor.

They will, instead, exchange pricing information through the tool only when that information meets certain principles agreed with the OFT.

The watchdog’s executive director, Clive Maxwell, comments: “The OFT treats possible breaches of competition law very seriously, but we believe that formal commitments in this case would be a proportionate way of resolving our concerns.”

 

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