ABI proposes clarity guidelines for insurance renewal
In a letter sent today to the Financial Conduct Authority (FCA) the ABI proposed that renewal documents should include both the current premium and the renewal offer.
The ABI also suggested that policy documents for new customers include a clear explanation of any introductory offers being applied which may not be available come renewal.
Huw Evans, deputy director general of the ABI, 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 that we have we have the information we need when it comes to renewal.”
Selwyn Fernandes, Managing Director of LV= Direct, said: “Insurers must agree a common approach in order for this to work, as there are many factors that can impact an insurance premium, which may change throughout the year.
“For example if the customer makes a claim, changes vehicle, moves to a lower or higher risk postcode, or installs additional security; all of these can increase or reduce a premium. There needs to be an industry standard on how information is presented to consumers in order for them to be able to compare renewal premiums easily.”