Insurance: Prices
The question
To ask the Chancellor of the Exchequer, what steps her Department is taking to protect vulnerable consumers from disproportionate online insurance price increases.
Answered by Emma Reynolds
Insurers make commercial decisions about the terms on which they will offer cover following an assessment of the relevant risks. This is usually informed by the insurer’s claims experience and other industry-wide statistics. The government does not usually intervene in these decisions.
However, the government is committed to ensuring that insurers treat their customers fairly and insurance companies are required to do so under Financial Conduct Authority (FCA) rules. The FCA requires firms to ensure their products offer fair value (i.e. if the price a consumer pays for a product or service is reasonable compared to the overall benefits they can expect to receive). The FCA monitors firms to make sure they provide products that are fair value, and, where necessary, it will take action.
Verbatim has judged this answer against the question that was actually asked — answered, partly answered, or evaded. Sign in to see the verdict →