Admiral has agreed to contact customers who may have been given inaccurate information in renewal documents, following a clampdown by the Financial Conduct Authority (FCA), it was revealed today.
Admiral was found by the FCA to have included inaccurate premium amounts in renewal documents issued to some customers by publishing last year’s quoted premium before discounts were applied, rather than what the customer actually paid.
Under new FCA rules introduced in April, firms must clearly show the insurance premium a customer paid last year alongside their proposed renewal premium.
Admiral has agreed with the FCA that it will contact affected customers, those who renewed their policies after April 01, and may have received inaccurate information, to ensure it is fully compliant with the rules. If affected customers choose to go to another insurer, they will be able to cancel without penalty and will have their premium refunded.
“When introducing these measures, the FCA was clear that firms should be ready from April 2017. We will continue to keep a close eye on the industry’s response to ensure firms are complying with the new rules and will take action where necessary,” Jonathan Davidson, executive director of supervision, retail and authorisations at the FCA said in a release.
“It is vital that insurers give customers the right information so they can easily compare premiums and make a choice whether to shop around,” he commented.
The FCA said it is currently assessing firms’ implementation of the transparency rules to ensure that they are “giving customers clear and fair disclosure on their renewal prices.” The authority said that it has seen good practice, but there were also “some concerning examples.”'
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