Update on Citizens Advice ‘supercomplaint’ to the CMA
In December 2018 the Competition and Markets Authority published its response to the Citizens Advice super-complaint on the so-called ‘loyalty penalty’, making several recommendations in the cash savings, home insurance and mortgage markets. The FCA has outlined the various steps it has taken to address the issues in a recent update; these include:
The interim market study report on general insurance, published in October 2019, which looked at pricing practices for home and motor insurance. Alongside this the FCA provided an evaluation of its general insurance renewal transparency intervention which indicated the intervention had resulted in substantial consumer savings.
A range of industry-wide measures under consideration to reform these markets so they work well for consumers in the future; including tackling high premiums for consumers, stopping practices that could discourage switching, and making firms be clear and transparent in their dealings with consumers.
Encouraging forms to make best use of innovation so that general insurance markets benefit from technological developments including Open Finance.
The FCA has also set out its regulatory approach to ‘fair pricing in financial services’ and is consulting on ‘Guidance for firms on the fair treatment of vulnerable customers’.