"The heat is on for insurance companies – if you’re not implementing the Financial Conduct Authority’s (FCA) rules then you are likely to see action taken against you.
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 warning refers to its rules, introduced in April last year, that outlined firms must clearly show the insurance premium a customer paid last year alongside its renewal premium. It also means firms must show a straightforward message that encourages customers to shop around."
Paul Lucas Insurance Business UK 3rd April 2018
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.
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