Reminder on General Insurance Pricing Practices Rules

The FCA expects the New Year to deliver “fairer home and motor insurance renewals.” The reforms followed a review that uncovered that many insurers were increasing prices for renewing customers year-on-year – known as ‘price walking’.

The rules on pricing, auto-renewals and reporting came into force on the 1 January 2022. Firms have a transition period until 17 January to fully implement the pricing and auto-renewal disclosure remedies, but, after 1 January, they must pay redress or make repayments to people if the delay to implementing negatively impacts them.

The FCA hopes the new rules will save consumers £4.2bn over the next 10 years.

In a statement, Executive Director, Consumers and Competition at the FCA, Sheldon Mills, said, “Our interventions will make the insurance market fairer and make it work better. Insurers can no longer penalise consumers who stay with them. You can still shop around and negotiate a better deal, but you won't have to switch just to avoid being charged a loyalty premium.”

“We are keeping a close eye on how insurers respond to our new rules, to ensure that the benefits of a better insurance market are delivered to consumers.”

If you have any questions regarding the above or any other compliance issues, please contact your Business Manager or the team at RWA via 01604 709509 or helpdesk@rwagroup.co.uk.

About the author

Kirk joined RWA in 2015, having worked in the financial services sector for many years. He started out in both the general insurance and mortgage advice arms of HSBC, before becoming the Compliance Officer at Go Compare and Training & Competence Manager at Optimum Credit. 

At RWA, Kirk is Deputy Head of Compliance. He supports RWA clients by looking after their compliance, training and competence needs and keeping them up to date with regulatory changes. He promotes the achievement of fair customer outcomes and specialises in designing and implementing T&C schemes for firms of all sizes.

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