Industry backs OFT’s move to refer motor

The Office of Fair Trading’s (OFT) decision to refer the UK motor market to the Competition Commission was greeted with support from across the market when it was announced in early June.

Describing the motor market as it stands as “dysfunctional”, John Fingleton, chief executive of the OFT, said: “We believe the focus that insurers have on gaining the competitive edge through raising their rivals’ costs means that drivers pay more than they need to for their motor insurance policies.”

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