People who renew home or car insurance will pay more than what they have to pay as a new customer since January.The โรม่าทดลองเล่นฟรี new rules were confirmed by the city's regulator, the Financial Conduct Authority (FCA), after years of complaints.FCA said the move will save around £ 4.2 billion of loyal customers over a 10-year period.But admitted that the cheapest offer could be ended for new customers.Regulators try to change the rules to prevent "Price movement" - when insurance price goes up with each renewal, even if the risk level does not change.These measures will end the very high prices paid by many loyal customers," said FCA's Sheldon Mills.Consumers can still benefit from their shopping or negotiations with their current service provider. But will not be charged extra for renewal, just being an existing customer.
It follows complaints from consumer groups where loyal customers pay unnecessarily more.The so-called price walk, customers are charged more every year with the same insurance company - even if their risk is not greater.FCA has pointed to an example where new customers for home insurance typically pay £ 130 for one year of coverage.But for the same policy, when staying with the same insurance company for five years, the annual premium increases to £ 238.For auto insurance, new customers pay £ 285, while those who have been with the carrier for more than five years pay £ 370, according to the FCA example.Following a huge complaint from Citizens Advice, the FCA seeks to deal with the loyalty penalties resulting from growth and shoppers encouragement to find better deals on insurance, overdrafts and utility bills.
The replacement will get the best offer as new customers. Loyal people will be charged more.10 million policies in home and auto insurance are held by people who have been with the provider for five years or more.Among those facing loyalty penalties is Manchester-based Mike Noone, who retired after 16 years working at a fruit and vegetable stall with his wife."In retrospect, running a small business like us is wasteful and you tend to let things happen at home," he said.He received a quote for the renewal of car insurance, the price increased by 20%.One of our daughters said: 'Dad, you really have to use the internet and find yourself with better words,' so I am, '' he said.He challenged his insurance company, which didn't move the price, so he switched providers.
'Systematic deception'
The charity said others may not be able to change that easily. They say the problem is worse for those with very low incomes, who may not have the technology to find the cheapest deals or those who find it difficult to compute.We are pleased to see the FCA set limits on this systematic scam and we now need to see similar action in other markets," said Matthew Upton, Citizens Advice director of policy.Additionally, the FCA will adopt new rules to make it easier for consumers to cancel auto-renewal of their policies and require insurers to take a closer look at how they offer fair value to consumers.It also requires that home and auto insurance companies report additional information to regulators.A spokesperson for the Association of British Insurers, which represents the sector, said: "As the FCA previously said, insurers are not making too much profit, and as they point out now, it is likely that companies are not too profitable. Can no longer provide service Low-priced offers that are not sustainable for some customers.He added that it's important that customers remain motivated for their shopping and that people should be looking for a deal that meets their needs rather than choosing the cheapest deal.