Home Insurance: Fees and Charges
The question
To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential merits of extending regulations preventing existing customers from being charged higher premiums than new customers to include homecare insurance.
Answered by Emma Reynolds
The Government is committed to ensuring that insurers treat all customers fairly and insurance companies are required to do so under the Financial Conduct Authority’s (FCA) rules. The FCA is the independent body responsible for regulating and supervising the financial services industry. The FCA requires firms to ensure their products offer fair value. The FCA monitors firms to make sure they provide products that are fair value, and, where necessary, it will take action.
In January 2022, the FCA introduced new rules to prevent insurers from charging existing customers more than new customers for equivalent home and motor insurance policies. The FCA intends to publish an impact evaluation of the effect of these rules later this year.
The FCA continues to monitor pricing practices across the insurance sector and may consider further action where there is evidence of consumer harm.
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