Admiral breached new FCA renewal rules
Motor insurer Admiral included inaccurate premium amounts in renewal documents issued to some customers, breaching new Financial Conduct Authority (FCA) rules.
The FCA has found that Admiral included premium amounts in renewal documents issued to some customers including last year’s quoted premium, before discounts were applied, rather than what the customer actually paid.
New rules introduced by the Financial Conduct Authority (FCA) in April 2017 require firms to clearly show the insurance premium a customer paid last year alongside their proposed renewal premium.
Admiral will now make changes to ensure it is fully compliant with FCA rules.
The company has agreed with the FCA to contact affected customers who renewed their policies after 1 April 2017, who may have received inaccurate information. If affected customers choose to go to another insurer, they will be able to cancel without penalty and will have their premium refunded.
“It is vital that insurers give customers the right information so they can easily compare premiums and make a choice whether to shop around,” said Jonathan Davidson, executive director of supervision - retail and authorisations.
“When introducing these measures, the FCA was clear that firms should be ready from April 2017. We will continue to keep a close eye on the industry’s response to ensure firms are complying with the new rules and will take action where necessary.”
The FCA is currently assessing firms’ implementation of these rules to ensure that firms are giving customers clear and fair disclosure on their renewal prices.
Ian Hughes, chief executive of insight and advice provider Consumer Intelligence, said: “The rules were designed to make it easier for customers to find the most competitive quote but our experience is that some insurers are interpreting the rules in different ways with some not quoting the actual price paid last year when sending out renewals. Insurers who are being completely transparent are entitled to be unhappy. There needs to be consistency and a level playing field.”
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