Insurers told to reveal their claims figures to help people pick the best policies
Insurers could soon be forced to publish figures showing the number of claims they pay out, to help people pick the best policies.
After the launch last year of a probe into bolt-on cover - extra insurance sold with a separate policy - the City regulator is poised to make all firms become more transparent.
Last year, the City watchdog carried out a probe into add-on cover. This kind of insurance is sold to customers as an extra when they buy another item.
Consultation: Theft insurance is often flogged to people when they buy a mobile phone, but it is often poor value
For instance, theft insurance is often flogged to people when they buy a mobile phone. But the Financial Conduct Authority found the insurance is often poor value.
Few claims are paid out, meaning people are paying up to £200million a year over the odds. The watchdog has now launched a consultation into how to sort out the market.
Christopher Woolard, FCA director of strategy and competition says: ‘We are committed to introducing a measure of value for general insurance products.
‘We believe consumers in this market need to have greater transparency about what they are paying for.’
The consultation will close in September.
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