UK: Insurers, brokers rally to end MFN clauses

Reports say insurers and bankers encouraged the Competition Commission to ban the use of most-favored-nation clauses entirely after high-level talks were held with the regulator.

The meetings saw the insurers and brokers pushing to end “narrow” MFN clauses, which only require price comparison prices to have a common product price with an in insurer’s own side.

Reports say the Commission had previously worked to end “wide” MFN clauses, which ban insurers from offering cheaper prices than anywhere else. But the executives reportedly rallied for an all-out ban on the narrow agreements following reports that car insurance packages that are sold through price comparison services are nearly always covered by a MFN clause.

Despite the joint effort, reports say one unnamed insurer doubted the Commission would be able to effectively end the clauses, suggesting that the Financial Conduct Authority would be better suited for the job.

Full Content: Post Online

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