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Citizens Advice welcomes move by the ABI and BIBA to tackle insurance loyalty penalty

8 May 2018

Citizens Advice has responded to plans announced by the ABI (Association of British Insurers) and BIBA (British Insurance Brokers’ Association) today to take action on excessive differences between new customer premiums and renewals:

Gillian Guy, Chief Executive of Citizens Advice, said:

"Today's announcement shows the industry recognises the scale of this problem and is willing to act responsibly to stop consumers being penalised for their loyalty. Our research found that longstanding home insurance customers can pay an average of £110 more a year than new customers.

"The devil, however, will be in the detail - whether this is successful will depend on prices actually coming down for loyal customers.

"The industry should also work with the Financial Conduct Authority to collect better data on the scale of this loyalty penalty. Then we can assess whether this unfair practice is being tackled effectively."

Notes to editors

  1. The Citizens Advice service comprises a network of local Citizens Advice, all of which are independent charities, the Citizens Advice consumer service and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more see the Citizens Advice website.
  2. 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.
  3. To get advice online or find your local Citizens Advice in England and Wales, visit
  4. You can get consumer advice from the Citizens Advice consumer service on 03454 04 05 06 or 03454 04 05 05 for Welsh language speakers.
  5. Local Citizens Advice in England and Wales advised 2.5 million clients on 6.2 million problems in 2014/15. For full service statistics see our publication Advice trends.
  6. Citizens Advice service staff are supported by more than 21,000 trained volunteers, working at over 2,500 service outlets across England and Wales.