General Insurance Article - PwC comment on FCA GI Pricing Practices Market Study


PwC comment on the FCA General Insurance Pricing Practices Market Study

 Mohammad Khan, UK General Insurance Leader, PwC, said:  "Potential remedies to pricing and renewal processes can impact the industry hardest. The most significant are: restricting or banning pricing optimisation linked to how likely consumers are to renew, require automatic switching to lower priced products offering the same level of cover and banning auto renewal or making it opt-in only."

 "Some of the proposed remedies are likely to shake up the industry, the FCA recognises supply side remedies are likely to create winners and losers but seem to be willing to take such risk and monitor the situation closely once the remedies are in place."

 Jane Portas, Insurance Partner, PwC, said: "The FCA has concluded 6m consumers in the general insurance market are getting a raw deal, a third of which are vulnerable customers. The remedies proposed in today's report are wide ranging and of significant impact if they go ahead. They impact pricing, renewal processes, enhanced communication and transparency requirements and expanding pricing and product governance requirements."

 "After a long wait, the range and depth of potential action will be a worry for the industry. The FCA calculates 6m consumers are getting a bad deal with a cost of £1.2bn annually if they were to pay average premiums. This is more than enough to justify tough tough proposals. "
  

Back to Index


Similar News to this Story

THINK Drink Driving Campaign Comment
Clare Egan, Head of Motor at Admiral said: “The latest THINK! Campaign highlights the role we can all play in stopping our friends, family or colleagu
Government campaign tackles drink driving at the source
UK telematics insurance pioneer, insurethebox, is throwing its support behind a government campaign designed to encourage young people to intervene t
FCA highlights its areas of concern in financial services
The Financial Conduct Authority (FCA) has today published its annual Sector Views, an assessment of the risks and potential harm to consumers across f

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.