Motor and Home Insurance Probe

Published / Last Updated on 31/10/2018

Home & Motor InsuranceThe Financial Conduct Authority (FCA) Launches General Insurance Market study

The Financial Conduct Authority (FCA) will focus on market studies into how general insurance firms charge customers for home and motor insurance.

General Insurance (GI) generates over £78 billion in premiums for UK insurers, 82% of most UK adults hold one or more GI product the most common being home and motor insurance.

The FCA’s goal is to ensure consumers are getting competitive and fair prices. The FCA market study will give them a further understanding of any harm from general insurance pricing practices to consumers and if required what actions needed to improve the market.

Their study will focus on:

  • Consumer outcomes from pricing practices
  • Fairness of outcomes from pricing practices
  • Impact on the competition from pricing practices
  • Addressing any harm the FCA finds

The FCA has written to CEOs of firms with their expectations on clear pricing and looking after the interest of new and or ling standing customers and treating them fairly.

The FCA is seeking input from stakeholders on fair pricing and accompanying evidence on the discussion paper by 31 January 2019 and they aim to publish the final report by the end of 2019.