Wealth Design News

The glare has been on asset managers’ fees to date but the FCA has now announced it will investigate the pricing practices of general insurance firms. The news was released on the same day that Citizens Advice lodged a ‘super-complaint’ with the Competition and Markets Authority (CMA) over dual pricing. The charity claims that loyal customers across five market sectors, including home insurance, are losing out on £4.1bn a year to what it calls a loyalty penalty. Specifically, research found that 8 in 10 people are paying a significantly higher price, in at least one of the mobile, broadband, home insurance, mortgage and savings markets for remaining with their existing supplier. In response the FCA said it has long been concerned about dual pricing and in its 2018/19 business plan would be looking at the pricing practices of general insurance firms.