The FCA has today confirmed new measures to reform general insurance pricing practices.
Charlotte Clark, Director of Regulation at the Association of British Insurers, said:
“Insurers support these reforms and will continue working closely with the FCA to ensure they are delivered effectively. While the FCA recognises their interventions could lead to price increases for consumers who regularly shop around, these remedies should ensure that all customers get fair outcomes from competitive insurance markets.
“It is vital that the new rules are applied across the whole insurance market, including price comparison websites and insurance brokers, with a uniform level of supervision and monitoring by the FCA, to ensure good customer outcomes. As the FCA has said previously, insurers do not make excessive profits and, as they now point out, it is likely that firms will no longer be able to offer unsustainably low-priced deals to some customers.
“It will remain important to maintain incentives for customers to shop around, while ensuring competitive deals for those who stay with their insurer. When shopping around people should ensure that they choose the right product for their needs, looking at the overall value of the product, and not just buying price”
For more information, please contact the ABI Press Office on [email protected]