More transparency for online payment of property insurance contracts

The Financial Conduct Authority (FCA) has criticized property insurers’ lack of clarity about the conditions of their online insurance payment.

The FCA has already inspected 13 insurers, 30 intermediaries and 4 websites that offer online home and motor insurance policies.

The regulatory body accuses them of not providing accurate information to underwriters on the different payment options: yearly or monthly. This shortage of transparency could be misleading to the policyholders on the exact amount of the premium of the underwritten risk.

As a reminder, any company authorized to distribute online insurance products is required to submit a standard policy in which interest rate, amount of expenses, annual premium rate as well as total premium to be paid, should be identified.