You are here: Home - Insurance - News -

Admiral customers sent incorrect renewal notices

0
Written by: Paloma Kubiak
16/06/2017
Admiral has started contacting its insurance customers after a paperwork blunder meant they received inaccurate information in renewal documents.

The regulator, the Financial Conduct Authority (FCA) brought in a new rule on 1 April 2017 requiring general insurance firms to clearly display last year’s premium in renewal notices, as well as the proposed premium.

This enables customers to check their cover and price, and encourages them to shop around for the best insurance cover.

However, the FCA found that Admiral included inaccurate premium amounts in home and motor renewal documents issued to some customers. The paperwork included the previous year’s quoted premium before discounts were applied, rather than the price customers actually paid.

The insurer has now started to contact affected customers who renewed their policies after 1 April 2017, however Admiral has not disclosed the number affected.

Customers will be given three weeks to shop around for a cheaper price with another insurer. If they then want to cancel their policy and switch to another provider, they won’t be charged any fees and the full premium will be refunded.

The FCA is currently assessing firms’ implementation of these insurance premium rules to ensure customers receive “clear and fair” disclosure on their renewal prices. It said it has seen good practice but found “some concerning examples and will continue to address specific concerns with individual firms.”

‘Likelihood of more problems to come’

Ian Hughes, chief executive of Consumer Intelligence, said insurance customers aren’t quite getting the transparency the FCA envisioned on renewal disclosure. “We are just over two months into the new era which was supposed to help shopping around and already there are problems with the likelihood of more to come.

“The rules were designed to make it easier for customers to find the most competitive quote but our experience is that some insurers are interpreting the rules in different ways with some not quoting the actual price paid last year when sending out renewals. Insurers who are being completely transparent are entitled to be unhappy.  There needs to be consistency and a level playing field.

“Drivers and homeowners can save up to £100 a year by switching provider after a year. It is always the best policy to shop around at renewal to make sure customers have the best cover at the best price. “

Admiral confirmed it will make changes to ensure it is fully compliant with the rules by 1 August 2017, and it will contact all affected customers by 14 August.

‘Fair and transparent pricing to all’

An Admiral spokesperson, said: “We apologise for any confusion or inconvenience caused to customers who received an inaccurate renewal document. We are amending the way in which these customers are able to compare the price of the insurance policy being offered at renewal with what they paid the previous year.

“We are getting in touch with affected customers to ensure they are fully satisfied. Admiral is committed to offering fair and transparent pricing to all customers.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
2268661-credit-card1
Brits waste £100m a year on card charges abroad

British holidaymakers are wasting millions of pounds a year by using their everyday debit and credit cards abroad as they’re...

Close