“The current arrangement is neither helpful to consumers or firms.”
This was how Association of Medical Insurers and Intermediaries (AMII) executive chair Stuart Scullion (pictured) described the existing state of affairs when it comes to general insurance renewal. It can be recalled that the Financial Conduct Authority (FCA), a year after implementing transparency measures, revealed that there are firms that continue to fall foul of the not-so-fresh rules.
Scullion, who believes healthcare is on the receiving end, does not blame companies for non-compliance but points to the regulator’s supposed shortcomings.
“Yet again the healthcare sector is being impacted by an FCA broad-brush approach to general insurance business,” he said in a statement. “The premium comparison problem exists in the household and motor sectors where, sadly, some insurers take advantage of loyal existing consumers in their renewal premiums.
“However, healthcare is being negatively impacted. The shopping around notices are just an extension of the problem. The FCA should have issued firms with a single shopping around statement and told them where they wanted it posted in renewal documentation.”
The AMII chair noted how providers and intermediaries were only “encouraged” to display the notices on the front page when this could have been made mandatory. As for the shopping around messages, Scullion cited the difference in the suggested wording, depending on how long policyholders have been with their insurers or brokers.
“If a customer has been with Insurer A for a period of six years but only used Broker B as their appointed intermediary for two years, they would receive both of the shopping around notices which only serves to confuse,” he explained. “In addition, it is a nightmare for insurers and intermediaries to police.
“I’d have preferred the FCA to be more prescriptive – issue a single statement and say it must be displayed on one of the first two pages of a renewal invitation. That would deliver simplicity and consistency.”
To Scullion’s belief, the regulation in place isn’t helping anyone.
“I want an FCA which is proudly the protector of the consumer, but one which does not place an unnecessary burden upon member firms,” he stated. “Sometimes they lose sight of that.”
