OFT referral to Competition Commission – reaction from the RMI’s NAB
“The RMI’s National Association of Bodyshops (NAB) welcomes the OFT announcement that it is referring the private motor insurance market to the Competition Commission for investigation,” said Tony Lowe, RMI Board Member and NAB Executive Member.
The OFT has decided to refer the market to the Competition Commission after a market study gave it reasonable grounds for suspecting that there are features of the market that prevent, restrict or distort competition. The NAB were involved in this market study, providing evidence collated from their members which suggested many motor insurance companies take part in aggressive business and tax practices that ultimately lead to consumer detriment and a commercial advantage to that motor insurer.
Lowe continued: “The NAB has long campaigned for the removal of business practices which have created a dysfunctional market for our members.
“The evidence we provided to the OFT included information on practices which restrict choice, the removal of which will increase the quality and value of our members’ services to the consumer, whilst correcting misconceptions in media comment relating to repairers businesses.
“Whilst the decision to review the market is positive it is important that steps are taken to ensure that there is a long term solution in place. We support the ideal of the sector looking to self regulate overseen by a watchdog which we feel would have a longer term positive effect rather than the route of Government regulation.”
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