FCA to launch study into home and motor insurance pricing
Following the super-complaint made by Citizens Advice to the Competition and Markets Authority that focused on the excessive prices charged to disengaged consumers (the super-complaint covers several markets, including insurance, cash savings and mortgages), the FCA has made the following statement:
“The FCA has been concerned about the issue of long-standing customers being charged more for some financial products than new customers for some time. This has informed our earlier work on cash savings and mortgages.
In the FCA’s 2018/2019 Business Plan we announced that we were looking at the pricing practices of general insurance firms. As part of that work we will launch a market study looking at how general insurance firms charge their customers for home and motor insurance. The terms of reference for this market study will be published in a few weeks’ time.
Andrew Bailey, Chief Executive of the FCA commented:
“Citizens Advice have raised a number of important issues and we will work closely with the CMA as they investigate this super-complaint.
“We expect firms to look after the interests of all customers and treat them fairly, whether they are new or long-standing. It is important to get the balance right so that existing customers do not miss out on the benefits of competition and innovation, including when they purchase or renew their general insurance products.
“The general insurance market study we have announced today will help us examine the issues we have already identified in the market in more detail.”