OFT drops probe into use of premium comparison tools

The Office of Fair Trading has dropped a probe into whether underwriters were using insurance premium comparison tools to push up prices for customers.

Insurance Times has learnt that the market’s watchdog has decided not to proceed with an investigation into price tracker tools, such as Open GI’s Premium Insight, which are used by insurers and brokers to benchmark their prices against competitors.

The OFT launched the soft probe, which was part of a wider-ranging look at online purchasing, amid concerns that the data from such tools could be used to push up end prices for customers.

An ABI spokesman said it had been told it that its own guidance exceeded consumer protection standards available in other industries and that the OFT had no plans to include insurance in the scope of a wider study.