Insurers to warn customers of high renewal premiums

♦providers of home, car and travel insurance have agreed to warn customers if they are on “introductory deals” that will see their bills soar after the first year.

The Association of British Insurers and the British Insurance Brokers’ Association have launched a set of principles and action points to crack down on loyal customers potentially paying excessively more on renewal than new customers.

The plan applies to products such as home, motor and travel insurance, but not pet insurance, and the approach will be built into firms’ procedures for determining the premium at renewal.

The announcement comes after new rules requiring firms to display the previous year’s premium on renewal notices.