Adds more detail
LONDON, Sept 22 (Reuters) – Britain’s Financial Conduct Authority said on Tuesday it was proposing to stop insurers from charging more to repeat car and home insurance customers than to new clients.
When a customer renews their home or motor insurance policy, they would be paying no more than they would if they were new to their provider through the same sales channel, such as online,the FCA said.
“The FCA estimates that its proposals will save consumers 3.7 billion pounds ($4.73 billion) over 10 years,” said Christopher Woolard, the FCA’s interim chief executive.
It singled out “price walking” or complex pricing practices that allow insurers to raise prices for consumers who renew their car and home insurance policies year after year.
The aim is to stop loyal customers being penalised, the FCA said on Tuesday.
It identified 6 million policyholders paying high or very high margins