FCA launches review of general insurance pricing practices
Written by staff reporter
The Financial Conduct Authority has launched a review into how general insurers charge customers for home and motor insurance amid concerns that pricing practices may be discriminating against consumers.
The market study is intended to give the FCA a deeper understanding of the scale of any harm to consumers from general insurance pricing practices, who it affects and, if required, what actions are required to improve the market.
FCA chief executive, Andrew Bailey, said the watchdog’s initial work has identified a number of areas of potential consumer harm.
“We want to make sure that general insurance markets deliver competitive and fair prices for all consumers. This market study will help us examine the outcomes from general insurance pricing practices and inform how, if necessary, we should intervene to improve the market,” he explained. “If change is needed to make the market work well for consumers, we will consider all possible remedies to achieve this.”
General insurance generates over £78bn in premiums for UK insurers. The FCA’s Financial Lives Survey shows that most UK adults (82%) have one or more products, with home and motor insurance being the most commonly held.