Urgent warning issued to anyone with an insurance policy before January 1

A warning was sent to anyone with an insurance policy before January 1.

As part of a New Year’s reshuffle, insurance companies will no longer be able to charge existing customers more for renewal than they would charge new customers.

The new rules and regulations driving the change are predicted to save customers across the country billions of dollars.

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The Financial Conduct Authority pushed through the rule changes in an offer to save consumers money and ensure they are not exploited by businesses.

Sheldon Mills said: “Our interventions will make the insurance market fairer and make it work better. Insurers can no longer penalize consumers who stay with them.

“You can still shop around and negotiate a better deal, but you won’t have to switch just to avoid paying a loyalty bonus.

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“We are closely monitoring how insurers react to our new rules, to ensure that the benefits of a cheaper insurance market are delivered to consumers. “

There are other new FCA rules starting this week, including simpler processes to cancel automatic policy renewal.

Companies must also now demonstrate that their products deliver fair value to customers.

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Justin D. O'Neill