EARBY-based West Craven Insurance Services has welcomed moves that could force insurance companies to provide clearer information on renewal quotes.
Following pressure from consumer groups, the Financial Conduct Authority’s (FCA) is drawing up new rules to ensure renewal quotes include previous premiums as well.
Ian Clarkson, Managing Director of West Craven Insurance Services, said: “When you are informed of a new premium, many insurance companies don’t remind you what you paid previously. Sometimes this means that customers don’t know that the cost of their insurance policy is going up.”
“In the current climate it’s really important that policy-holders can see how much their bill has risen. They have to consider price, but they should always ensure that they have got an appropriate level of cover.”
The Association of British Insurers (ABI) the body that represents insurance companies supports the proposed changes.
Additionally, the FCA is looking at introductory premiums that encourage people to switch providers.
Mr Clarkson added: “Cheap initial premiums are often charged in the first year of a policy, as an incentive for you to switch. I fully support the FCA’s idea that insurers should let you know how much the policy will rise in the second year.”
“I think this problem often arises when people switch online – we all want to find a bargain, so it’s easy to be swayed by a headline price without noticing add-ons or small print. I’d encourage people to look at prices online, but then speak to a broker who knows your locality and your circumstances. We support the moves to greater transparency for consumers, as it helps ensure that people will get the best policy at the best price.”
The new rules on insurance premiums are expected to come into force by the end of next year.
