On April 1st 2017, new rules from the Financial Conduct Authority (FCA) came into place to ensure greater transparency when it is time for insurance policies to be renewed.
What Are the New Rules on Insurance Renewals?
According to the FCA's 'Increasing Transparency and Engagement at Renewal in General Markets' report, in December 2015, new guidance was proposed and 'intended to address concerns about levels of consumer engagement and the treatment of consumers by firms at renewal, and the lack of competition that results from this.'
These new rules that came into effect last month dictate that all firms in the general insurance market must now disclose last year's premium at each renewal (whether by letter or email) and encourage consumers to compare quotes.
Please note: The FCA defines a 'renewal' as 'carrying forward a policy, at the point of expiry and as a successive or separate operation of the same nature and duration as the policy, with the same insurance intermediary or the same insurer'.
If a consumer has renewed with the same company four consecutive times, these new rules require organisations to send additional messages to them and to encourage the consumer to shop around.
But it's not just insurance firms who are required to abide by these new rules, brokers and intermediaries are affected too.
What Does this Mean for Commercial Insurance Customers?
Although commercial cover is not explicitly part of the scope of this new ruling, the FCA has stated that it is encouraging firms to consider these changes across the board which would mean commercial customers should receive similar notifications as renewal periods approach.
In short, the FCA are encouraging comparisons in a bid to help you, the consumer, make better buying decisions which could result in saved money. Therefore, these changes have been welcomed with open arms by many.
Compare and Save Online
If you're nearing the end of your business insurance policy and would like to compare quotes to ensure you get a competitive price for your cover, we can help.
Whether you're looking for tradesmen insurance or motor cover, property owners' insurance or a business insurance policy, our dedicated team will ensure that you have all the options and advice you need to build and purchase a policy that works for your needs.
Thanks to our strong relationships with insurance providers, constant monitoring of products and expert knowledge of the industry, you can rest assured an online comparison with us will guarantee a value for money result.
Get in touch to learn more or browse our insurance products and compare online now.
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