We are the voice of insurance and long-term savings | Contact us

ABI responds to FCA launching a market study into pricing in motor and home insurance

Commenting on today’s confirmation by the Financial Conduct Authority (FCA) that it is launching a market study into pricing practices in the retail motor and home insurance markets, Hugh Savill, the ABI’s Director of Regulation, said:

“While many customers benefit from competitive motor and home insurance markets with lower premiums, we agree that the market is not working as well as it should for some long-standing customers. Insurers were the first sector in the economy to launch an industry-wide initiative to tackle excessive price differences between new and existing customers earlier this year, and the FCA has welcomed this. This is an important issue and insurers will work with the FCA to address issues raised in the report to  ensure that the market works as well as possible for all consumers”.

On the 8 May 2018 the industry launched a plan to help tackle excessive premium differences between long standing and new customers. Further details can be found here.

Other steps that have taken to help improve outcomes for all customers:

  • Renewal communications. In April 2017, the FCA introduced a requirement on insurers to show both the current and new premiums on renewal documents. This followed the ABI’s call in 2014 for this to be made a requirement across the market.
  • Vulnerable Customers Code. In 2016, the ABI and the British Insurance Brokers’ Association (BIBA) published a Code of Good Practice to help vulnerable customers at renewal. This Code aims to ensure that staff are adequately trained to recognise and understand potentially vulnerable customers at renewal and are able to offer flexible options to help address specific needs.

 

-ENDS-

 


Last updated 31/10/2018