The Financial Conduct Authority (FCA) published proposals today that would require general insurance providers to include details of last year’s premium on customer’s renewal documents.
The proposals are designed to address concerns that some customers might be getting a bad deal by sticking with the same company.
“We hope the proposals encourage more people to shop around for the best product for them,” said Christopher Woolard, director of strategy and competition at the FCA. “It is important that insurers give their customers the information they need to do this and ensure they’re treating their customers fairly.”
The Association of British Insurers (ABI) wrote to the FCA last July to suggest that a minimum standard of information should be in renewal documents, including details of what premium was paid the year before.
Commenting on today’s FCA proposals, Huw Evans, director general of the ABI, said: “This will help customers and encourage them to engage with the policy they choose and what they get for their money. It will take time to implement such a big change across the whole insurance industry and we will work closely with the FCA to ensure this welcome reform is delivered on a realistic timescale.”
Meanwhile, Paul Evans, Axa UK and Ireland boss, remarked: “We began showing last year’s price on renewal notices across motor, home and SME business lines earlier this year and firmly believe it represents best practice for insurers and will lead to deeper levels of customer trust and loyalty.”