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Tuesday, July 23, 2024

Insurer welcomes new FCA transparency rules

WEST Craven Insurance Services has welcomed new rules implemented by the Financial Conduct Authority (FCA) demanding insurers are more transparent when quoting renewal prices, to make it easier for customers to compare deals instead of just renewing their insurance.

The new rules require insurance firms to disclose last year’s premium at each renewal, so that consumers can easily compare it to the new premium offered. Customers, meanwhile, are encouraged to check their cover and shop around for the best deal at each renewal.

“This is long overdue in our opinion and something we do at West Craven Insurance as a matter of course,” said Lisa Parker, a Company Director at West Craven Insurance.

“There should be a level playing field for both consumers and providers and this will hopefully go some way towards that. We think it’s important to ensure that our customers get the best deal available for them, so we always inform them in advance of their renewal date to give them a chance to make sure they’re getting the right cover at the right price.”

Insurance companies are also compelled to identify customers who have renewed for at least four consecutive times and push them further to shop around.

According to the FCA, renewal letters sent from April 1st must include the new transparency disclosures.

The FCA stated that pricing practices at the point of renewal have not been transparent and could result in long-time customers paying more than new clients for the same insurance product. The regulator noted that with the new rules taking effect, consumers could save up to £100 million on their insurance renewals this year.

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