The Competitions and Markets Authority (CMA) has taken the decision to clampdown on Co-Op Insurance in regard to its no-claims bonus protection.
According to a statement from the regulator, it has issued directions to the insurer insisting it takes immediate action to provide price information to thousands of affected motorists to ensure it complies with the Private Motor Insurance Market Investigation Order 2015.
As of February 01, Co-op will charge a fixed rate to drivers renewing their no-claims bonus protection with the firm. As a result, customers will be given two quotes – one that includes the no-claims bonus protection and one that does not, allowing them to actually evaluate how much the protection costs. They will also be given the option to call the firm for more information.
“It is very disappointing that a major company such as Co-op Insurance has taken so long to provide this vital information to its customers,” said Adam Land, senior director of remedies, business and financial analysis.
“Before the order came into force, the price and benefits of NCB protection were often unclear to drivers. We expect the Co-op to fully comply with the terms of our directions immediately so that motorists can search more easily for the best deal for them and decide whether or not they want this optional cover.”
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Furthermore, CMA has ordered Co-op Insurance to ensure that customers can see the price they will be charged in written offers, documents and on the company’s website by no later than October 01.
The order follows the CMA’s market investigation into private motor insurance which showed that Co-op Insurance was the only one of the major insurers which failed to meet its deadline as we originally reported
here.
A spokesperson at the Co-op Insurance offered the following comment to Insurance Business.
“For 90% of our new business customers we are already fully compliant with this order. We are part way through a major transformation programme, which when complete will allow us to be fully compliant and enable us to provide best in class service to our members," the spokesman said.
“We continue to keep the CMA aware of our progress and have been working collaboratively with them on interim solutions. We are working to be fully compliant by the agreed date of October 01, 2017.”
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CMA outlines “disappointment” in Co-op Insurance
Co-op Insurance responds to regulator criticism
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