Competition isn't working and people are still being ripped off.
That's the conclusion of a new report by the Financial Conduct Authority - and the watchdog isn't going to take it lying down.
In fact, it's planning a whole series of new rules aimed at forcing insurance firms to play fair with their customers.
FCA executive director Christopher Woolard said: "This market is not working well for all consumers.
"While a large number of people shop around, many loyal customers are not getting a good deal."
About 6million people are being overcharged, the FCA said, to the tune of £200 a year each.
Worse, vulnerable Brits are far more likely to fall into this category, with one in three of them affected.
So it's taking action.
It's plans include:
- Banning or restricting practices like raising prices for consumers who renew year on year or requiring firms to automatically move consumers to cheaper equivalent deals
- Stop practices that could discourage switching – including restricting the way that firms use automatic renewal
- Make firms improve the way they communicate with their customers. The FCA is also considering forcing firms to publish information about price differentials between their customers.
- Harness the benefits of innovation in the longer-term, so that general insurance markets benefit positively from technological developments including Open Finance.
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