Business

Compare The Market clause could deny people better prices

The Competition and Markets Authority said clauses used by the price comparison site in its contracts stopped home insurers from quoting lower prices on rival sites.

After reviewing the evidence, the CMA said the so-called “most favoured nation” clauses could be causing customers to miss out on better home insurance deals.

It also meant home insurance companies are more likely to pay higher commission rates to comparison sites with the extra costs potentially being passed on to customer, the CMA said.

CMA chief executive Andrea Coscelli said: “Over 20 million UK households have home insurance and more than 60% of new policies are found on price comparison sites. Therefore it’s crucial that these companies are able to offer customers their best possible deals.

“Our investigation has provisionally found that Compare The Market has broken the law by preventing home insurers from offering lower prices elsewhere. This could result in people paying higher premiums than they need to.”

The comparison website, famous for its use of meerkats Aleksandr and Sergei in its TV adverts, could be fined up to 10% of its revenue as a result of the breach.

Compare The Market said: “We are disappointed by the CMA’s provisional findings. We will carefully review the evidence once we have access to it, and look forward to working with the CMA over the coming months to ensure a satisfactory outcome.”

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