On 16 June 2017, the FCA published a press release announcing that it has taken action against Admiral for giving customers inaccurate information in renewal documents.
The FCA introduced new rules on 1 April 2017 requiring firms to clearly show the insurance premium a customer paid in the last year alongside their proposed renewal premium. The FCA found that Admiral included inaccurate premium amounts in renewal documents issued to some customers. It published last year's quoted premium before any discounts were applied, rather than what the customer actually paid.
The FCA explains that Admiral has agreed to contact the affected customers who renewed their policies after 1 April 2017, who may have received inaccurate information. If affected customers choose to go to another insurer, they will be able to cancel their Admiral policy without penalty and will have their premium refunded. Admiral will also now make changes to ensure it is fully compliant with the new rules.
The FCA is currently assessing how relevant firms have implemented the new rules to ensure that customers are receiving clear and fair disclosures of their renewal prices. It has seen evidence of good practice, but has also found some concerning examples. It will continue to address specific concerns with individual firms.
In August 2016, the FCA explained that if it identifies further concerns around consumer inertia and barriers to competition at renewal then it will consider further action at that time.