You will be aware from previous communication and from market correspondence that the Competition and Markets Authority (CMA) Private Motor Investigation (PMI) Order comes into effect on 1st August 2016.

From this date UK Motor Insurers who provide, or offer, NCB Protection must provide customers with certain prescribed information to enable them to make an informed decision as to the cost and the impact of the NCB awarded.

Specifically, the Order requires that, at the point of consideration (New Business Quotation & Renewal Invite) for accepting NCB Protection, a customer must be advised of:

  • The increase in premium (implied price) arising from accepting NCB Protection
  • The current number of years NCB awarded
  • The average NCB discount awarded by product against NCB years
  • Step-back formulas outlining the consequences of making a claim(s) in the event of having or not having NCB Protection
  • The fact that NCB Protection provides no guarantee that premiums will not rise.

ERS is in the stages of completing the updates to its in-house system and market-wide software houses and will be ready to meet the requirements on time.

What is in and out of scope?

The Order applies to all private motor insurance contracts that cover risks relating to the use of privately owned motor cars (excluding motorcycles) in the UK, where NCB is being provided.

ERS has determined that the following products sold to consumers are in scope of the Order:

  • Private Car (including Rural, Non Standard and Modified & Imported)
  • Van (including Rural and Non Standard)
  • Motorhome
  • Horsebo
  • Minibus

What do you need to do?

For our brokers who use market-wide software houses or have all documentation generated by ERS, our implementation for adhering to the Order is in progress and by 1st August 2016 all documentation issued in respect of New Business Quotations and Renewal Invitations will reflect the requirements of the Order.

In addition, as the Order also applies to the provision of New Business Quotations and Renewals administered over the telephone, then your present call scripts and written communications to current (or prospective) customers from 1st August 2016 onwards must also be compliant with the CMA Order.

For any queries regarding average NCB and step-back figures relative to specific products, please review our Policy Documentation where you can find the required information within the General terms section. This can be viewed here.

For our broker partners who issue their own documentation (including policy wordings), we have already written to you explaining in more detail what you need to do in order to ensure that you are compliant and where applicable, are awaiting the submission of a copy of the revised versions of your own documents to

For further information and to review the final Order click here;

If you have any queries relating to this please contact your Business Development Executive or Select team representative.

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