OFT reports on liability insurance market

The Office of Fair Trading (OFT) has noted Improvements in the liability insurance market in light of concerns highlighted in previous reports.

In particular the OFT has identified a number of possible improvements including a drop in premium increases, more effective communication between policyholders and insurers and a reduction in the number of businesses being denied cover.

"We have seen significant changes in these markets over the past two years aimed at making them work better for all parties," commented Graham Winton, branch director in the OFT's Markets and Policy Initiatives Division.

"There will, however, continue to be cost pressures, and all sides must remain committed to pushing forward positive changes."

According to figures premiums for employers' liability saw continued increases above inflation throughout 2004m and fewer businesses have been denied cover by their insurer.