Transparency in insurance renewals
On 1 April 2017, new rules came into effect that will increase transparency and engagement at renewal in general insurance markets.
It is expected that the rules will prompt more consumers to shop around at renewal, making price increases more transparent. They will apply when a firm (either the insurer or intermediary) sends a general insurance renewal notice to a consumer.
Firms will be required to:
- Disclose last year’s premium at each renewal, so that it can be easily compared to the new premium offered
- Encourage consumers to check their cover and shop around for the best deal at each renewal
- Identify consumers who have renewed four or more consecutive times, and give these consumers an additional prescribed message encouraging them to shop around.
The policy statement can be viewed at: http://bit.ly/2oQVXaX
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