A new deal at renewal – ABI proposal to further improve clarity for customers
The proposal builds on the work the FCA has already started in this area. The regulatory initiative proposed by the ABI would be a new minimum standard of information applying across the market that, if adopted, all customers would receive when renewing their private motor and home insurance:
· Renewal documents for motor and home buildings and contents insurance should include the premium that the customer started the year paying alongside the renewal quote for easy comparison, and
· Policy documents for new customers should include a clear explanation that any introductory discounts which may have applied to new customers may not apply when the policy is due for renewal.
Huw Evans, Deputy Director General of the Association of British Insurers said:
“Insurers want to make renewing your insurance policy easier and clearer to understand by reminding you of last year’s premium and flagging up introductory discounts.
“Most of us have home or car insurance and it is important we have the information we need when it comes to renewal.
“Our proposal, if adopted by the FCA across the market, would significantly improve transparency for millions of customers. We look forward to discussing it in detail with the FCA.”
Notes for Editors
1. Enquiries to:
Malcolm Tarling 020 7216 7410 Mobile: 07776 147 667
Linsey White 020 7216 7415 Mobile: 07885 998 011
Kelly Ostler-Coyle 020 7216 7375 Mobile: 07968 364 302
2. The ABI is the voice of the UK’s insurance, investment and long-term savings industry. It has over 300 members, which together account for around 90% of premiums in the UK domestic market.
The ABI’s role is to:
– Be the voice of the UK insurance industry, leading debate and speaking up for insurers.
– Represent the UK insurance industry to government, regulators and policy makers in the UK, EU and internationally, driving effective public policy and regulation.
– Advocate high standards of customer service within the industry and provide useful information to the public about insurance.
– Promote the benefits of insurance to the government, regulators, policy makers and the public.
The UK insurance industry is the third largest in the world and the largest in Europe. It is a vital part of the UK economy, managing investments amounting to 26% of the UK’s net worth and contributing the fourth highest corporation tax of any sector. Employing over 290,000 people in the UK alone, the insurance industry is also one of this country’s major exporters, with 28% of its net premium income coming from overseas business.
Insurance and businesses protect themselves against the everyday risks they face, enabling people to own their own homes, travel overseas, provide for a financially secure future and run businesses. Insurance underpins a healthy and prosperous society, enabling businesses and individuals to thrive, safe in the knowledge that problems can be handled and risks carefully managed. Every day, our members pay out £147 million in benefits to pensioners and long-term savers as well as £60 million in general insurance claims.
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4. More news and information from the ABI is available on our web site, www.abi.org.uk.