FCA attempts to scrap “loyalty penalty” for insurance customers

Blog | Asset Finance
Published: 20th January 2022
Area: Litigation & Dispute Resolution

Share This

Since 1st January this year, new rules have come into effect, to provide greater protection for loyal and vulnerable home and motor insurance customers.

The new rules, which have been introduced by the FCA, state that any person who renews an existing policy won’t need to pay any more than a brand new customer would. Essentially, customers who tend to remain with the same insurance companies won’t be affected, but for those who like to switch up their providers, it could mean a price hike.

What does the FCA believe?

In reality, many people believe that their insurer will automatically reward loyalty, but the FCA believe that is not what happens in many cases. Not all, I hasten to add! However, the FCA principles of treating customers fairly adds a powerful narrative around customer engagement, hence the need for change.

It is thought that this change will save customers £4.2 billion over ten years. These rule changes follow pressure from Citizens Advice complaints, and are a bid to avoid the phenomenon known as “price walking”.

Matthew Upton, director of policy at Citizens Advice, said: “Rip-off renewal prices have seen consumers paying over the odds for far too long. No longer can you be exploited just for staying loyal.”

Get In Contact

Eddie works with a highly skilled team to deliver industry specific advice to the asset finance and leasing sector.

 

Litigation & Dispute Resolution

If a dispute has begun to escalate and your attempts to resolve have been left unheeded you may feel the time has come to escalate matters.

Our Thoughts

All the latest thoughts and insights from our team

Shakespeare Martineau sees 16 per cent growth pre-merger

10 Aug

Firm News

Shakespeare Martineau sees 16 per cent growth pre-merger

Legal and professional services group Ampa has announced 16% growth in its latest year-end […]

Read article Right Arrow

Dyslexia-specialist book seller snapped up by global publisher

5 Aug

Corporate & Commercial

Dyslexia-specialist book seller snapped up by global publisher

Malmesbury-based Phonic Books has been sold to major publisher Dorling Kindersley Limited – part […]

Read article Right Arrow

SHMA® On Demand

All the latest on-demand content

Misconduct outside the workplace and business disrepute

8 Sep

Michael Hibbs, Partner | Danielle Humphries, Solicitor

Misconduct outside the workplace and business disrepute

In this webinar, Mike Hibbs – Partner and Danielle Humphries - Solicitor in our […]

Register Right Arrow

Mental health and wellbeing in the workplace | Westminster Employment Forum

19 Sep

Helen Hughes, Legal Director

Mental health and wellbeing in the workplace | Westminster Employment Forum

Helen Hughes will be joining the upcoming Westminster Forum Projects online conference to speak about women’s […]

Register Right Arrow