Home and car insurance firms are set to be banned from charging existing customers more than new ones, under a watchdog’s “radical” plans that could save customers £370m ($473m) a year.
The Financial Conduct Authority (FCA) announced a proposed crackdown on “harmful pricing practices” on Tuesday, as it unveiled a consultation on plans to shake up the home and car insurance industries.
Around 6 million customers pay “high or very high” prices for such insurance, according to the FCA. They would save a total of £1.2bn a year if they paid the average cost for customers of the same risk level.
“The FCA is proposing that when a customer renews their home or motor insurance policy, they pay no more than they would if they were new to