FCA to ban automatic insurance sales
In many cases the regulator found that consumers buy insurance products by accident when they are added automatically late in the transaction.
The ban would apply to add-on sales of regulated or unregulated products including mortgage protection and legal expenses sold with home insurance.
Christopher Woolard, director of strategy and competition, said: “This is about ensuring consumers can make the right decision on what add-on insurance they do or don’t need.
“Forgetting to un-tick a box at the end of a purchase is not making an informed choice.”
The regulator wants firms to provide suitable guidance on which add-on products are most suitable, while it encourages firms to compare packages of the primary product and add-ons early in the sales process.
To make it easier for the consumer the FCA also wants firms to provide the annual price of add-ons rather than a monthly figure.
The consultation period ends on June 25.
Woolard added: “These proposals will mean that consumers will be in a better position to decide what they want and consider the options available to them.
“Fewer consumers will end up with products they didn’t want or don’t even know they own.”