LONDON (Reuters) - The trade body for the Lloyd's of London insurance market said on Wednesday it may appeal a decision by a UK watchdog not to tackle the problem of high motor insurance costs arising from temporary replacement cars.
The Competition and Markets Authority said on Wednesday it would ban agreements between price comparison websites and motor insurers that stop insurers from making their products available more cheaply on other online platforms.
But it said it could not find a solution to the problem that the amount which at-fault insurers have to pay for temporary replacement cars provided to not-at-fault claimants is far greater than the cost.
The Lloyd's Market Association said in a statement that it would discuss the decision on car replacement costs with its members and consider making an appeal. The current system creates unnecessary costs of up to 178 million pounds a year, the LMA said.
(Reporting by Carolyn Cohn)