The Association of British Insurers (ABI) announced that it has written to the UK’s Financial Conduct Authority (FCA) to propose an initiative that “could further improve clarity for customers when renewing and taking out motor and home insurance.”
The announcement follows the FCA’s launch of an examination on ways to increase transparency for the insurance buying public in order to make informed decisions, particularly in auto and homeowners’ coverage.
The ABI said its proposal “builds on the work the FCA has already started in this area. The regulatory initiative proposed by the ABI would be a new minimum standard of information applying across the market that, if adopted, all customers would receive when renewing their private motor and home insurance.”
The proposals would include the following:
– Renewal documents for motor and home buildings and contents insurance should include the premium that the customer started the year paying alongside the renewal quote for easy comparison, and
– Policy documents for new customers should include a clear explanation that any introductory discounts which may have applied to new customers may not apply when the policy is due for renewal.
Huw Evans, Deputy Director General of the Association of British Insurers commented: “Insurers want to make renewing your insurance policy easier and clearer to understand by reminding you of last year’s premium and flagging up introductory discounts. “Most of us have home or car insurance and it is important we have the information we need when it comes to renewal.
“Our proposal, if adopted by the FCA across the market, would significantly improve transparency for millions of customers. We look forward to discussing it in detail with the FCA.”
Source: Association of British Insurers (ABI)