The Financial Conduct Authority has threatened to take action against general insurance providers who aren’t complying with its transparency and shopping around rules.
From April 2017 the regulator forced providers to display the cost of renewing, what customers paid the year before, as well as a ‘clear and straightforward message’ to encourage customers to shop around.
Jonathan Davidson, executive director of supervision – retail and authorisations at the FCA, said: “It is simply unacceptable to see that some firms are still not being properly transparent with their customers a year on from the introduction of the rules.
“Firms failing to get this right may have led to consumers losing out as they do not have the right information to decide whether or not to shop around.
“We have already acted where we have seen particularly poor practice in firms and will continue to do so where we see firms not being transparent.
“As we said in October, we expect other firms to take notice of these issues, to look at what they are doing and to make sure they are getting it right.”
In October the FCA found that some firms were misstating the previous years’ premium, failing to implement the rules for all products and customers and leaving out the shopping around message or not displaying it clearly.
The FCA said it expects firms and senior management in those firms to take immediate action to ensure they are compliant.
It also invited customers who aren’t given sufficient information to contact the regulator.
Jason Berry, director of sales at insurance provider Uinsure, said: “It is important consistency is evident across all providers so it is welcome news that the FCA will be clamping down on those firms who have not yet fully embraced the rules.
“The changes do ensure consumers are better informed about the price they pay at renewal and the cost difference which is evident from the previous year.
“Undoubtedly, many consumers will still require expert advice so an understanding of what is and what is not covered by their policy is fully known.”