Motor insurers seek deregulation of third-party premiums
In short
Motor insurers asked for third-party premiums to be deregulated and for knock-for-knock pacts to end. This came in replies to the regulator’s consultation paper on insurance distribution reforms, according to the summary.
The industry says car makers and dealers can affect commissions, discounts, and repair costs. It is not stated whether the regulator will accept the request.
What the reporting says
Motor insurers have sought deregulation of third-party premiums and an end to knock-for-knock pacts in responses to the regulator's consultation paper on insurance distribution reforms. The publisher-supplied summary says some industry participants argued that automobile manufacturers and dealers influence commissions, discounting and repair costs, which could blunt the impact of proposed curbs on intermediary remuneration. The immediate outcome of the request is not stated.
Why it matters
Motor insurers responded to the regulator’s consultation paper on insurance distribution reforms by asking for third-party premium deregulation and an end to knock-for-knock pacts. The summary says some participants argued that automobile manufacturers and dealers can influence commissions, discounting and repair costs. That could limit the effect of proposed curbs on intermediary pay. What the regulator will decide is not stated.