U.K. Home, Car Insurers May Face Curbs on Yearly Price Hikes
- FCA says about 6 million customers aren’t getting a good deal
- Regulator plans to propose fixes in the first quarter of 2020
Semi-detached houses in a south London.
Photographer: Richard Baker/Corbis News via Getty Images
U.K. home and car insurers could be stopped from jacking up prices when customers’ policies come up for renewal as the country’s financial-markets watchdog clamps down on an industry that’s not giving a “good deal” to about 6 million customers.
Companies such as Aviva Plc, Admiral Group Plc and Hastings Group Holdings Plc could also face curbs on automatic policy renewals and stricter rules on how they communicate with customers, the Financial Conduct Authority said on Friday. If policyholders who currently pay high premiums instead paid the average amount for their insurance, they would save 1.2 billion pounds ($1.5 billion) a year, according to an FCA statement.