Moody's warns OFT motor referral will "hurt profitability"

Last week, the OFT's decision to refer motor was largely welcomed by the insurance industry.

But the credit rating agency cautioned that the commission's investigation - which could last up to two years - is "credit negative".

In a research note, Moody's associate analyst Helena Pavicic explained: "At a minimum it [the investigation] will create uncertainty for the industry and more significantly could result in lower motor premium rates.

"A reduction in revenue from lower premium would hurt