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Insurers to suffer dip in short-term profitability due to FCA’s price walking measures

By 2020-09-28T07:20:00

profit dip

However, credit ratings agency predicts that in the longer term, retention will increase

The FCA’s proposals to tackle price walking – where existing customers pay higher home and motor insurance premiums compared to new customers – will lead to a reduction in short-term profitability at insurers while pricing systems are updated and premium rates for longstanding customers are slashed, according to US credit rating agency Fitch Ratings.

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