Regulator interim report on dual pricing
The FCA could force all insurers and brokers to automatically move customers onto cheaper deals, it reveals today in its interim report on the market study into pricing.
The regulator said it is considering the move as part of its plans to banish exploitative pricing, the practice in which insurance firms put unsuspecting loyal and vulnerable customers on price escalators meaning premiums get hiked each year.
The FCA, as part of its remedies is also considering:
* Banning or restricting prices for customers who renew annually
* Restricting the use of automatic renewal
* Forcing insurance firms to improve communication with customers on pricing
* Boosting plans to raise the use of Open Finance
Strategy and competition director Christopher Woolard said: ”This market is not working well for all consumers. While a large number of people shop around, many loyal customers are not getting a good deal. We believe this affects around 6 million consumers.
”We have set out a package of potential remedies to ensure these markets are truly competitive and address the problems we have uncovered. We expect the industry to work with us as we do so.”