AXA announced a similar move in May, while Direct Line says it is ‘committed’ to the changes
LV= has followed in the footsteps of AXA by adding previous premium prices to renewal forms, in anticipation of an expected FCA review.
A spokeswoman for LV= said that it would be adding the previous premiums to its renewal forms from next year. They said that details about how it would work had yet to be confirmed and that it was a complicated process.
She said the move comes in anticipation of an FCA review in to premium level transparency, after Chancellor George Osborne announced it as a key issue in his most recent budget.
He said: “Many people simply renew with their existing insurer without checking the price they could get elsewhere. The FCA will review what more can be done to ensure that people are encouraged to shop around.”
Likewise, Direct Line Group (DLG) has confirmed that it is ‘absolutely committed’ to introducing the additional notes to all renewal forms, but concedes that it will take time and is unsure of when they will be able to do so.
DLG personal lines managing director Mike Holliday-Williams said: “For these changes to be effective, they need to be applied across the industry in a consistent manner. This is a goal that Direct Line Group is absolutely committed to making happen.”
In May of this year, AXA announced it had begun adding previous year’s premiums on its motor renewal letters, along with an explanation of any rises. It said that it would follow this up with household and business renewals later this year.
At the time, AXA direct and partnerships chief executive Yves Masson said: “Being more transparent with the information we provide will help customers make the right decisions. It’s a key factor in building trust, which has been all too sadly lacking in our industry in the past.”
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