OFT launches market investigation into liability insurance
Continuing its scrutiny of the financial services market, the OFT has launched a fact-finding study into the UK liability insurance market. The study will cover public, product, professional and employers’ liability insurance.
The study has been launched to consider whether the market is working effectively. There are concerns about large increases in premiums, reported reductions in underwriting capacity and increases in excesses.
The study will examine why premiums have recently increased. It is aiming to analyse current and past premiums, to understand why premiums have risen and to see what lessons can be learnt from international experience. Dr Christopher Parsons has been retained by the OFT.
A report will be published in spring 2003. The OFT indicates that further work may be undertaken as a result of the study’s findings.
