After some field trials and consulting late last year, the Financial Conduct Authority has mandated changes for the renewal of General Insurance policies. About time too, many might say!
Essentially insurance companies inviting renewal must:
- Remind policyholders of the premium they paid last year with details of any changes due to mid term adjustments
- Encourage “shopping around” for the best deal with especially strong wording for those who have already renewed four times
- Advise policyholders to check that their cover is adequate and relevant and to bear this in mind when “shopping around”.
Insurers will also be guided to ensure renewal notices and the renewal options available to policyholders are clearly set out. To avoid any loopholes the rules will apply to shorter period policies of ten months or more.
These rules of conduct come into force on 1 April 2017.