The FCA has published the interim report of its market study into the pricing of home and motor insurance. The FCA found that competition is not working well for all consumers in these markets.
The FCA estimates that around 6 million policyholders pay high prices and are not getting a good deal on their insurance. If those customers paying high premiums paid the average premium for their risk they could save around £1.2 billion a year. This affects all types of customers. The FCA estimates this includes 1 in 3 people who are potentially vulnerable.
This interim report sets out concerns about how pricing in the home and motor insurance markets leads to consumers who do not switch or negotiate with their provider paying high prices for their insurance. The report also sets out some potential remedies to tackle concerns about pricing.
• Market overview.
• How firms set prices and treat their customers.
• The impact of pricing practices on competition.
• Outcomes from pricing practices.
• Potential remedies.
• Next steps.