UK insurer Admiral has fallen foul of new rules on customer information, just weeks after they were introduced.
Since April, insurers offering renewal quotes to customers have had to include details about what the previous year’s price was.
But on Friday the Financial Conduct Authority said that Admiral had included inaccurate premium amounts in renewal documents sent to some customers. The company had been using the previous year’s quoted premium, before discounts were applied, rather than the actual amount paid.
Admiral has agreed to contact the customers affected, and to let them cancel without penalty if they want to.
Jonathan Davidson, FCA Executive Director of Supervision for Retail and Authorisations, said:
It is vital that insurers give customers the right information so they can easily compare premiums and make a choice whether to shop around. 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.
We apologise for any confusion or inconvenience caused to customers who received an inaccurate renewal document. We are amending the way in which these customers are able to compare the price of the insurance policy being offered at renewal with what they paid the previous year. We are getting in touch with affected customers to ensure they are fully satisfied. Admiral is committed to offering fair and transparent pricing to all customers.”
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