Britain’s Financial Conduct Authority (FCA) found that dual-pricing is a major problem due to the ability of insurance companies to collect increasing volumes of customer data. A probe by the FCA found that four million customers were paying 50pc above the average premium in the market for home insurance, with some paying double. Some two million motorists were paying way over the average. Many of these were vulnerable customers.
It found some firms did engage in “price walking” by gradually increasing prices for customers who continued to renew. To remedy this it proposed that insurers offer a renewal price that is no higher than the equivalent new business price for that customer through the same sales channel.
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