Aviva's acquisition of Direct Line is expected to reduce competition, causing potential price hikes in car and home insurance premiums. Consumer campaigners warn that the combined market share could dominate the insurance sector.
Millions of customers face paying more for their car and home insurance if Aviva succeeds in buying rival Direct Line , a consumer campaigner has warned.
The FTSE 100 insurance giant said the deal would allow Direct Line's 9m customers to benefit from its 'breadth, scale and financial strength'. Combining Aviva's 10.6 per cent share of the motor insurance market with Direct Line's 10.3 per cent would see the combined group easily leapfrog Admiral, the number one player with 11.3 per cent, according to price comparison website uSwitch. Aviva already leads in the smaller home insurance market, where Direct Line is ranked third behind LV=.
It now costs an average of £612 a year to insure a vehicle, latest figures from the Association of British Insurers trade body show.
Aviva Direct Line Insurance Competition Premiums Fairer Finance
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