Insurance firms have been warned by the Financial Conduct Authority (FCA) that it will take action against those who fail to fully implement rules recently introduced to increase transparency and to encourage customers to shop around at renewal time.
The FCA’s new rules and guidance to increase transparency and to prompt customers to shop around came into effect on 1 April 2017. The rules require firms to disclose the previous year’s premium, as well as their proposed renewal premium at each time of renewal. Firms must prominently display a message encouraging consumers to check their insurance cover and to shop around for the best deal. Firms are also required to show an additional prescribed message to encourage shopping around to consumers who have renewed their cover with the firm four consecutive times.