ABI says publishing prior year premiums will help encourage customers to engage with their policies

The ABI has welcomed proposals by the FCA to make insurers publish prior year premiums.

The regulator said the proposals aimed to address concerns that some consumers paid higher prices if they stayed with the same insurer, particularly for a long period of time.

Back in July the ABI wrote to the FCA proposing compulsory disclosure of the previous premium on renewal documents.

Commenting on today’s news ABI director general Huw Evans said: “Publishing last year’s price alongside the renewal quote up front is a good idea which insurers themselves proposed to the FCA last year.

“This will help customers and encourage them to engage with the policy they choose and what they get for their money. It will take time to implement such a big change across the whole insurance industry and we will work closely with the FCA to ensure this welcome reform is delivered on a realistic timescale.”