Add-ons: Under the microscope

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It has been just over a year since the Financial Conduct Authority unveiled a new investigation into the manner in which add-on products are sold by insurers. The probe, launched in May 2013, was preceded by a £7.4m fine to Swinton, after the watchdog found in July the broker had failed to treat customers fairly in its telephone sales of monthly add-on insurance policies.

Between the two events, in June 2013 the FCA had already told firms to clean up their act over the selling of motor legal expenses cover, calling on providers to consider the basis on which the cover is sold, the quality of the explanations around the product and the extent of cover on offer.

The sale of additional products is under immense scrutiny by the Financial Conduct Authority. With the insurance industry pushing resources into self-policing since the motor legal expenses inquiry, has it done enough?

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