All change for insurance premiums in 2022

[OatCake Productions]

This is the latest from The Financial Conduct Authority regarding the future of your insurance premiums.





"Next year, the way insurance premiums are calculated will be changing to help to protect consumers.
The Financial Conduct Authority has been looking into the insurance market, including the way discounted prices have been increasingly offered to new customers to get them to switch providers.

Fairer pricing for everyone.

These tempting low prices can’t be offered in the long term, so when customers renew over the years, their price creeps up.
This means that new customers are paying less than customers who stay.
The Financial Conduct Authority has put a stop to this market-wide practice.

From January 2022, anyone getting their insurance invite will be offered the same price, or less, as an equivalent new customer.

So, when you get your next renewal for your home or car insurance from any provider in 2022, you may find that the price doesn’t seem to tie in with the last one you had. But after this levelling of the playing field when prices may change, things will be clearer, and you can be confident that new customers aren’t getting a lower price than those who stay".







Probably just another way of saying you're going to pay even more for your insurance premiums from now on.

[m40man]

It’s a difficult situation: those able to shop around get the best prices, to the detriment of those who can’t (including I’m sure some who just can’t be bothered to shop around).

Which means I personally benefit, because when I get a renewal I don’t like, I go elsewhere. But folks like my old dad, who is not tech savvy & lacks the confidence to deal with phoning around for quotes pays more than he currently needs to.

The change appears designed to protect folks like him, to my detriment. It therefore leaves me somewhat ambivalent about the change.

[cam7777]

I reckon this will lead to overall increased prices

[Greendivvy Beeb]

I can't understand why insurance companies and other businesses don't reduce the renewal if possible for long term customers.
Surely it's better business having a customer who you know that pays on time, doesn't put claims in every year and produce lots of admin jobs due to customers having to keep swapping and changing companies to get a cheaper product.

Am I dreaming of a perfect would