ABI calls for better regulation after OFT motor probe

The ABI has said that regulation is needed to tackle out-of-control costs in the motor insurance market.

Responding to the OFT’s report into the costs of motor insurance, ABI director of general insurance Nick Starling said: “The ABI welcomes today’s announcement on the referral of the credit hire and credit repair markets to the Competition Commission for investigation.

“We had called for this. For too long  insurers have faced inflated rates for credit hire cars and excessive hire periods which have led to higher insurance premiums for customers. Regulation of all players in the market to tackle excessive costs is needed, and we hope that the work by the Competition Commission will bring much-needed reforms that in turn will result in lower car insurance premiums for consumers.”