FCA statement on super-complaint from Citizens Advice to the CMA on excessive prices for disengaged consumers

Citizens Advice submitted a super-complaint to the Competition and Markets Authority (CMA) calling on it to identify remedies and recommendations to put an end to the penalty paid by loyal and disengaged consumers. The super-complaint covers several markets, including insurance, cash savings and mortgages.

The FCA has been concerned about the issue of long-standing customers being charged more for some financial products than new customers for some time. This has informed our earlier work on cash savings and mortgages.
Pricing practices of general insurance firm
In the FCA’s 2018/2019 Business Plan we announced that we were looking at the pricing practices of general insurance firms. As part of that work we will launch a market study looking at how general insurance firms charge their customers for home and motor insurance. The terms of reference for this market study will be published in a few weeks’ time.
Andrew Bailey, Chief Executive of the FCA commented: ‘Citizens Advice has raised a number of important issues and we will work closely with the CMA as it investigates this super-complaint.
Treat customers fairly
‘We expect firms to look after the interests of all customers and treat them fairly, whether they are new or long-standing. It is important to get the balance right so that existing customers do not miss out on the benefits of competition and innovation, including when they purchase or renew their general insurance products.
‘The general insurance market study we have announced today will help us examine the issues we have already identified in the market in more detail.’
Source: www.fca.org.uk