Insurance customers to get reminder of last year's premiums
The Financial Conduct Authority (FCA) have been worried that you've not been shopping around enough when it comes to home and car insurance, so this new rule is meant to help you make an informed decision on whether or not you should stick with the same company or not.
Christopher Woolard, director of strategy and competition at the FCA, said: "We hope the proposals encourage more people to shop around for the best product for them. It is important that insurers give their customers the information they need to do this and ensure they’re treating their customers fairly."
This is clearly a nod to the oft-criticised auto-renewal that is popular in this sector. Obviously, auto-renewing is handy for some people, but it can also make you stay with a company when you're perhaps not prepared to.
It has been said that auto-renewals have cost each household an average of £200 per year in needless additional premiums.
While this new rule from the FCA doesn't stop it, it is a small step in the right direction. It is obvious that they need to do more than this though, as insurance companies aren't to be trusted - you just watch them stick this newly required information in the small print of letters they send to customers, or bury them in confusing figures.
We need this information to be standardised, so that everyone can understand it easily. We'll see how it all pans out.