The Financial Conduct Authority (FCA) has found that Admiral included inaccurate premium amounts in its renewal documents.
New rules introduced by the FCA in April require firms to clearly show the insurance premium a customer paid last year alongside their proposed renewal premium.
The FCA has found that Admiral included inaccurate premium amounts in renewal documents issued to some customers by publishing last year’s quoted premium, before discounts were applied, rather than what the customer actually paid.
Admiral will now make changes to ensure it is fully compliant with FCA rules and has agreed to contact affected customers who renewed their policies after April 1, 2017, who may have received inaccurate information.
If affected customers choose to go to another insurer, they will be able to cancel without penalty and will have their premium refunded.
The FCA is currently assessing firms’ implementation of these rules to ensure that firms are giving customers clear and fair disclosure on their renewal prices.
The FCA has seen good practice but some concerning examples and will continue to address specific concerns with individual firms.
Executive director of supervision, retail and authorisations, Jonathan Davidson, said: “It is vital that insurers give customers the right information so they can easily compare premiums and make a choice whether to shop around.
“When introducing these measures, the FCA was clear that firms should be ready from April 2017.
"We will continue to keep a close eye on the industry’s response to ensure firms are complying with the new rules and will take action where necessary.”
Login to comment
Comments
No comments have been made yet.