Insurers warned over hard selling

INSURANCE customers are being flogged useless policies and paying over the odds because of greedy middlemen, the City watchdog has said.

Families are overcharged by salesmen and wrongly encouraged to buy products they do not need, according to the Financial Conduct Authority.

In a letter to chief executives, the FCA warned that bad behaviour will not be tolerated – and firms and their bosses could be fined if they break the rules.

Jonathan Davidson of the FCA, said: ‘We will not hesitate to use the full range of our regulatory powers.’

Last month the FCA hit Carphone Warehouse with a £29million penalty. Staff were trained to recommend insurance to customers already covered through home insurance or bank accounts.

The Association of British Insurers said the majority of customers ‘should not be concerned’ by the FCA report.