CAN THE FCA STOP INSURANCE PRICING’S VICIOUS CIRCLE?

IAN HUGHES | November 7, 2018

article image
Launching its market study last week, the FCA voiced concerns that “general insurance pricing practices have the potential to cause harm to consumers, particularly those who are vulnerable.”  At Consumer Intelligence, we’ve been saying for a long time that there is no easy market solution for what has unfortunately become a common industry practice.  The regulatory action could be the thing that fixes it. Because hate it as much as many insurers do, there’s a commercial disincentive for insurance brands to give up on cheaper rates for new business.  Dual pricing is not a deliberate and calculated attempt to rip off loyal customers. It’s often a by-product of having introductory rates in a market with high customer churn. It’s the perfect vicious circle.

Spotlight

Stonewood Insurance Services, Inc

Stonewood Insurance is a Managing General Agency, formed in March 2005, specializing in writing Non-Standard Personal Automobile Insurance through top rated carriers.

OTHER ARTICLES

Spring Cleaning Your Business Insurance

Article | March 25, 2020

Spring cleaning can be more than clearing out some clutter in your home. There are numerous ways you can sort through and organize different aspects of your life. A commonly overlooked area of spring cleaning is your business insurance policies. It’s important to reevaluate your insurance coverage periodically. Things can change, and before you know it, your small business can change. Take some time to spring clean your business to help ensure future success.

Read More

Automation for the Future of Insurance: Enabling the Ecosystem

Article | February 17, 2020

During InsurTech Connect 2019, the world’s largest gathering for the insurance industry, I had the opportunity to meet and talk about the future of insurance with executives, thought leaders, analysts, consultants, and tech providers. In an interesting discussion with Seth Rachlin, chief innovation officer of Insurance at Capgemini, he discussed three trends that he envisions driving the “future of insurance.”

Read More

8 Types of Business Insurance Your Company Should Consider Having

Article | February 26, 2020

Financial losses from a product defect, data breach, serious illness or work-related automobile accident can force business owners to close their doors if they're not prepared. The cost of an unexpected event can be substantial. Hiscox quotes a 2014 study of small business owners, saying the average cost to defend and settle an employee lawsuit was $160,000. Employment litigation is just one type of risk your small business may face.

Read More

Does Business Insurance Cover Coronavirus Losses?

Article | March 31, 2020

People running businesses are scrambling to figure out how to deal with their financial losses and expenses from coronavirus COVID-19 business interruptions. Including me. I like sharing explainer Q&As with people who know more about subjects than I do and am using this blog post to share with others what I learned about what types of business insurance cover coronavirus COVID-19 losses. This is a basic explainer and not legal advice, and I tried to ask questions that would be helpful to both non-lawyers and lawyers.

Read More

Spotlight

Stonewood Insurance Services, Inc

Stonewood Insurance is a Managing General Agency, formed in March 2005, specializing in writing Non-Standard Personal Automobile Insurance through top rated carriers.

Events