In April 2017, the FCA introduced rules that outlined firms must clearly show the insurance premium a customer paid last year alongside its renewal premium.
According to an article written by Insurancebusinessmag.com, the regulator has this morning warned it will take action against general insurance firms that “fail to properly implement rules introduced to increase transparency and encourage shopping around at renewal time.”
The FCA has highlighted four particular areas where it believes some firms are failing. These are:
- Failing to implement the new rules for all products and customers;
- Misstating the previous years’ premium;
- Leaving out the shopping around message or not presenting it in a way which draws the reader’s attention; and
- Firms failing to properly identify all customers who needed renewal information either because of system error or a mistaken interpretation of the type of customer captured by the rules.
“It is simply unacceptable to see that some firms are still not being properly transparent with their customers a year on from the introduction of the rules,” said Jonathan Davidson, executive director of supervision – retail and authorisations at the FCA. “Firms failing to get this right may have led to consumers losing out as they do not have the right information to decide whether or not to shop around.