Motor and homeowner's insurance tariffs under control in the United Kingdom

According to the Financial Conduct Authority (FCA), insurers have an increasing tendency to implement an unorthodox pricing policy. To attract customers, companies offer competitive tariffs for the first year. At renewal, prices increase significantly, which becomes a problem for policyholders. This is a common practice in motor and homeowner's insurance.

To put an end to this practice, the supervisory authority could in the near future:

• limit tariff increases for renewable policies,
• prohibit tacit renewal

According to a recent report, 6 million policyholders paid a high price when renewing their contracts in 2018. The additional cost for policyholders is estimated at 1.2 billion GBP.

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