New rules introduced by the Financial Conduct Authority (FCA) in April 2017 require firms to clearly show the insurance premium a customer paid last year alongside their proposed renewal premium.
The FCA has found that Admiral included inaccurate premium amounts in renewal documents issued to some customers by publishing last year’s quoted premium, before discounts were applied, rather than what the customer actually paid. Admiral will now make changes to ensure it is fully compliant with FCA rules.
Admiral has agreed with the FCA to contact affected customers who renewed their policies after 1 April 2017, who may have received inaccurate information. If affected customers choose to go to another insurer, they will be able to cancel without penalty and will have their premium refunded.
The FCA is currently assessing firms’ implementation of these rules to ensure that firms are giving customers clear and fair disclosure on their renewal prices. The FCA has seen good practice but some concerning examples and will continue to address specific concerns with individual firms.
Jonathan Davidson, Executive Director of Supervision- Retail and Authorisations, said:
“It is vital that insurers give customers the right information so they can easily compare premiums and make a choice whether to shop around.
“When introducing these measures, the FCA was clear that firms should be ready from April 2017. We will continue to keep a close eye on the industry’s response to ensure firms are complying with the new rules and will take action where necessary.”
Notes to editors
- Policy Statement: Increasing transparency and engagement at renewal in general insurance markets (PS 16/21)[1]
- On 1 April 2013, the FCA became responsible for the conduct supervision of all regulated financial firms and the prudential supervision of those not supervised by the Prudential Regulation Authority (PRA).
- The FCA has an overarching strategic objective of ensuring the relevant markets function well. To support this it has three operational objectives: to secure an appropriate degree of protection for consumers; to protect and enhance the integrity of the UK financial system; and to promote effective competition in the interests of consumers.
- Find out more information about the FCA[2].