Citizens Advice says FCA's insurance finding "shocking"
Citizens Advice has responded to the Financial Conduct Authority's report into household insurance pricing.
Gillian Guy, Chief Executive of Citizens Advice, said:
“We knew insurance companies were penalising loyal customers, but it is shocking that the FCA has found many companies don’t even seem to have oversight of how much they’re charging customers.
“The insurance industry has said they want to tackle the loyalty penalty - but it’s hard to see how they can achieve this when companies don’t even have these basics in place.
“The FCA is treating the loyalty penalty seriously by conducting this review and scrutinising firms through a market study. We now expect strong regulatory action to stamp out this problem and enforcement against firms who are overcharging loyal customers.
“This is symbolic of a wider issue across essential markets like mortgages, broadband, mobile and savings.The Competition and Markets Authority needs to look very carefully at this as they respond to our super-complaint on the loyalty penalty.”
Notes to editors
Citizens Advice is made up of the national charity Citizens Advice; the network of independent local Citizens Advice charities across England and Wales; the Citizens Advice consumer service; and the Witness Service.
Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers.
Citizens Advice is the statutory consumer advocate for energy and postal markets. We provide supplier performance information to consumers and policy analysis to decision makers.
The Citizens Advice Witness Service provides free and independent support for both prosecution and defence witnesses in every criminal court in England and Wales.
Citizens Advice also offers Pension Wise appointments at 500 locations across England and Wales.
The advice provided by the Citizens Advice service is free, independent, confidential and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.