FCA makes insurance transparency proposal

The FCA said the proposal will address the concern that consumers are paying higher prices with the same insurer and barely shopping around for better deals.

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.”

In 2014 the FCA trialled including last year’s premium on renewal notices to over 300,000 consumers across the UK, prompting between 11% and 18% of people to either switch provider or negotiate a lower premium.

Huw Evans, director general of the Association of British Insurers, said: “Publishing last year's price alongside the renewal quote up front is a good idea which insurers themselves proposed to the FCA last year.

“This will help customers and encourage them to engage with the policy they choose and what they get for their money.

“It will take time to implement such a big change across the whole insurance industry and we will work closely with the FCA to ensure this welcome reform is delivered on a realistic timescale.”