Home insurers accused of exploiting the elderly and FCA urged to act

Home insurers are exploiting the elderly, says Citizens Advice.

A report from the organisation showed that home insurers may be overcharging up to 13 million UK households.

A survey by the organisation revealed that 40% of people have had their home insurance policy for over five years.

It means they could be paying around 70% more than a new customer - worth up to £110 a year.

The report has raised fears that becasue the elderly shop around less, they are an easy pricing hike target for insurers. 

Citizens Advice chief executive Gillian Guy said: ”Home insurance companies are taking advantage of people’s loyalty, and it’s older people who are suffering the most.”

She urged the FCA to act. 

“Vulnerable customers are the hardest hit and must be protected from this unfair practice,” she said.

Citizens Advice has become the latest major organisation to attack home insurers over social exclusion.

Last week, the Government was urged to act on contents insurance following a report.

The FCA is concerned over vulnerable groups being excluded and has introduced rules on transparency over old and new pricing being clear on documentation.

The FCA hopes the transparency on the last year’s price and the renewal price will encourage customers to shoparound, including the elderly. 

 Admiral had to apologise to customers over a blunder in implementing the rule.