The Financial Conduct Authority (FCA) has criticized property insurers’ lack of clarity about the conditions of their online insurance payment.
The FCA has already inspected 13 insurers, 30 intermediaries and 4 websites that offer online home and motor insurance policies.
The regulatory body accuses them of not providing accurate information to underwriters on the different payment options: yearly or monthly. This shortage of transparency could be misleading to the policyholders on the exact amount of the premium of the underwritten risk.
As a reminder, any company authorized to distribute online insurance products is required to submit a standard policy in which interest rate, amount of expenses, annual premium rate as well as total premium to be paid, should be identified.