Dual pricing complaint likely to result in ‘significant market change’
The super complaint over dual pricing is likely to result in “serious and profound” change in the insurance market, analysts believe.
The Citizens Advice complaint, which cuts across all market sectors, has triggered a more detailed investigation into dual pricing in insurance by the Financial Conduct Authority.
Gary Dixon, the chairman of the Association of Independent Non-Executive Directors, said super complaints were not brought “wily-nilly”.
“They research long and hard to ensure that their cases are ironclad and will result in significant insurance market change,” said Dixon.
“If I was on the board of an insurer, I would see this as a warning beacon prompting me to look very carefully at how my firm’s policies and working practices may stand up to the harsh spotlight of external criticism as there will be plenty on the way.”
He pointed to the widespread fallout from payment protection insurance, which was raised originally as a super complaint.
Dixon added: “My advice to the chair of any board in the insurance sector is to look very, very carefully at the policies driven by the board and the composition of the board itself.
“Does the board contain someone sufficiently independent to stand up for the rights of the consumers and ensure that changes are made? After all, any such changes now should help avoid the potential downsides of future compensation and redress.”
More on Claims
Disappointment in discount rate
Zurich disappointed in new #discountrate. David Nichols, Ch Claims Officer: "The failure to change the discount rate to a balanced level will only serve to increase the cost and, therefore, affordability of certain types of insurance - especially for higher risk customers." pic.twitter.com/ac1CfBzfxX
— Zurich Insurance UK (@ZurichInsUK) July 15, 2019
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