In a huge win for our ‘We don’t want to pay a premium’ campaign, the Financial Conduct Authority (FCA) has announced proposals that will require insurers to publish details of last year’s premium on your renewal notice.
The FCA’s proposals are backed by its trial of more than 300,000 UK consumers, which tested reactions to different types of information being provided at renewal stage. Printing last year’s premium on renewal notices had by far the biggest impact, with 11-18% of people switching or negotiating a lower premium on their home insurance.
Our executive director Richard Lloyd comments on the FCA’s announcement:
‘The Financial Conduct Authority's proposal is good news for the thousands of people who supported our campaign for insurers to show last year's premium on renewal letters.’
Christopher Woolard, director of strategy and competition at the FCA, said:
‘We hope the proposals encourage more people to shop around for the best product for them. It is important that insurers give their customers the information they need to do this and ensure they’re treating their customers fairly.’
The FCA’s proposals are backed up by our own research, where 85% of people in our survey said it would be useful to have their previous year’s premium on their renewal quote. A further 68% said that having last year’s premium would prompt them to look for a better deal, and 64% said they’d be more likely to haggle.
Richard Lloyd added:
‘This simple change should help people save money by prompting them to shop around or haggle for a better deal with their current insurer.’
The FCA will be asking for feedback on its proposals by 4 March 2016. We’ll be responding on behalf of the more than 30,000 people who backed our campaign – this is your win!