Until now, insurance firms have been able to hike prices without highlighting to the customer the premium they were previously paying. Renewal documents simply showed the new price and the consumer, noticing the increase but not making a full comparison with the previous price, mostly accepted the new deal with no questions.
But that is all set to change. The FCA is deciding whether renewal documents should change so that policyholders can see if their premiums have risen and make a quick comparison. The ABI, meanwhile, recommends that members include the original premium on renewal documents and that policy documents for new customers should explain that any introductory discounts may not apply at renewal time.
This move will not only help consumers to get a fair deal and gain a better understanding of the product but also help brokers to deduce which providers offer the best for their clients.
By working with a provider that does not operate a dual-pricing policy, you will be able to do right by your clients and, as such, win more business.