Ensuring you remain renewal transparency compliant
Posted on: 30 August 2017
Recent regulatory changes have made it ever more important for brokers to make sure they're providing customers with choice and transparency when looking for personal lines insurance.
An example of this is the FCA's renewal transparency rules. On 1st April, new rules to increase transparency and engagement at renewal came into effect.
These rules were introduced to address concerns about consumer engagement, improve the treatment of loyal customers and promote effective competition between insurers.
Understanding your responsibility
In renewal invites, it's now a requirement for brokers to show the following information clearly and prominently:
- The premium for the previous year
- A reminder for customers to 'shop around' for the best deal.
There's also a prescribed reminder wording for those customers renewing for the fourth time or more:
You've been with us for a number of years. You may be able to get the insurance cover you want at a better price if you shop around."
The prescribed wording applies even if a policy has transferred between insurers during this four year period.
As a broker, ownership of renewal letter content rests with you. However, to help support your business we've created the following renewal letter wording that you can use:
You may be able to find a better price for your insurance if you shop around elsewhere, but please remember to make sure that the cover continues to meet your needs. When considering cover, it's important to check things like product extras and quality of service to make sure you're getting a like-for-like comparison.
"If you do find alternative insurance, please make sure the start date is correct so you don't end up uninsured once your current policy expires."
More information about renewal transparency can be found on the FCA's website.