UK Financial Conduct Authority proposes ban “price walking” - certain renewal pricing practices
The UK Financial Conduct Authority (FCA) has proposed insurers would be banned from pricing practices that disadvantage renewal customers compared to first-time purchasers. This is a practice used by many insurers globally. The proposed rules would require that a customer renewing their home or motor insurance pays no more than they would if they were new to the provider through the same sales channel. Firms would be prevented from gradually increasing the renewals to consumers over time, in a practice known as “price walking”, other than in line with changes in risk. Be fascinating to see what the reaction of local Australian insurers would be to this proposal.
