Plan to set out insurance standards

Plan to set out insurance standards

Motorists could be helped to find cheap car insurance thanks to new proposals put forward by providers.

The proposals, set out by the Association of British Insurers (ABI), make the case for new industry-wide standards of information to be set.

The ABI wrote to City regulator, the Financial Conduct Authority (FCA), saying that renewal documents sent out to car and home insurance customers should include the premium the customer started the year paying in addition to the quote for the policy's renewal.

Under the proposals, letters sent out to customers should also make it clear that any discounts the customer enjoyed when they first joined the insurer, may not still apply when the policy comes up for renewal.

The trade body said it hopes to discuss the proposals in more detail with the FCA.

It said a poll that questioned more than 2,500 people found that 89% of those surveyed said they would find it beneficial to have the previous year's price set out on their renewal document.

Copyright © Press Association 2014

Copyright Press Association 2014