Proposals by the Financial Conduct Aiuthority have been announced in connection with customers renewing their home and motor insurance policies will pay no more to renew than they would if they were a new customer coming to the same provider.
Existing customers renewing their insurance with their current provider will not pay more than if they were to purchase as a new customer.
Firms will be prevented from gradually increasing the renewal prices to customers overtime unless the customers risk had changed, but will be free to set new business prices.
The Financial Conduct Authority (FCA) has identified 6 million policyholders were paying high or very high margins back in 2018 and customers that had been with the same provider for more than 5 years paid £370 for their motor insurance, whilst a new customer paid £285.
It is said they estimate the new proposal will save consumers £3.7 billion over 10 years and the impact will be monitored.
It is about time.