In response to previous correspondence on High Street banks treating customers fairly, I wonder if any readers have noticed motor and household policies being cancelled mid-term and the clients taking out policies through a well-known High Street bank.

I understand a certain High Street bank is currently having a drive to secure new household and motor policies and will induce policyholders to cancel mid-term by offering to cover all administration/short period charges along with cash-back offers.

When we challenged this bank, we were told that clients were receiving more cover (whether the clients need more cover can be debated).

I wonder how this High Street bank fares with FSA rules on Treating Customers Fairly and inducements, which is a topical subject at the moment.

If this practice is acceptable then I believe that the insurance industry is facing chaos.

Taken to extreme levels - in theory - clients could change their household and motor insurers a number of times during a year.

Statistical analysis by insurers would therefore be extremely difficult and clients' track histories could be prejudiced.

We became aware of the bank's practice when the local bank staff contacted our office on two occasions requesting details of our clients' cover and premiums so that they could price-match mid-term. Unbelievable.

SS Appleby-Jones
Managing director
Haven Insurance Brokers