Insurance
Insurance giant Swinton fined £7.4m for mis-selling add-ons
One of the UK’s largest insurers, Swinton, has been fined £7.4m for mis-selling add-ons.
The Financial Conducts Authority (FCA) found that the insurer had an aggressive sales strategy, which meant that it habitually mis-sold ‘add-ons’ to over 650,000 customers.
Between April 2010 and April 2012, Swinton sold personal accident, home emergency and motor breakdown policies, which generated an income of £92.m.
The FCA found that Swinton did not provide enough information to customers about the key terms of the policies and also failed to properly monitor its sales calls, which the regulator found to be ‘aggressive’.
Swinton has set aside £11.2m to repay those customers who were mis-sold, of which £1.9m has already been paid out.
Tracey McDermott, the FCA’s director of enforcement and financial crime, said:
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“Swinton failed its customers. When selling monthly add-on policies, Swinton did not place the consumer at the heart of its business. Instead it prioritised profit.
“At the FCA we have been clear in our expectation that firms must behave in the interests of consumers. Today’s outcome shows our approach in action and will act as a deterrent for other firms tempted to put profit figures above the fair treatment of customers.”
Any policy holders who believe they bought monthly cover as a result of mis-selling should contact Swinton directly.