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!
In a win for our campaign, AXA has today confirmed that it is now including information on last year's premium on motor insurance renewals. The company will be rolling this improved information out to other insurance renewal letters from June, the first big insurer to do so.
Which? executive director Richard Lloyd, said:
'We have long campaigned for insurers to put last year's premium on the renewal so we welcome AXA starting to do this for their customers. Now we want the Financial Conduct Authority to make all insurers follow suit.'
Insurance giant AXA is the first of the big insurers to commit to including information on last year's premiums in renewal quotes.
Following our campaign, the Association of British Insurers proposed last year that companies should improve the information they provide on renewal quotes so that consumers can make informed decisions about the best policy for them . We know that the Financial Conduct Authority is looking at the issue, but it is yet to announce what action it will take, and until now, none of the big insurers have included information on past premiums in quotes to their existing customers.
AXA is the first company to make a public commitment to change its practices - we look forward to seeing others follow suit.