Firms ‘can’t prove’ their prices are fair

SOME insurers are guilty of such poor record-keeping that they cannot prove they are offering the same prices to existing customers and new ones. That’s the damning conclusion of a report by the City regulator, the Financial Conduct Authority (FCA).

A year ago, the FCA introduced rules stating that insurers must offer a long- standing policyholder the same price as someone buying identical cover as a new customer.

But its research last month, seen by Money Mail, says some firms have not appointed senior enough staff to judge whether their businesses are complying.

The FCA told Money Mail it had ‘ intervened and secured redress’ for a number of insurance customers. But it insisted ‘most firms’ were ‘complying with our pricing rules’.