You are here: Home - Insurance - News -

ABI proposes clarity guidelines for insurance renewal

0
Written by:
10/07/2014
The Association of British Insurers (ABI) has proposed new guidelines to improve clarity for customers buying or renewing car and home insurance.

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.”

Tag Box

Debt

Pension

Spending

Financial fitness

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

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

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.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

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...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
Women more likely to seek professional pension advice

Women are more likely than men to seek financial advice when it comes to pension planning, according to research by...

Close