FCA to clamp down on insurance 'loyalty penalties'

The UK financial regulator, the Financial Services Authority (FCA), has said it will put in place measures to stop home insurance firms penalising loyal customers. The new measures were outlined in the organisation's Sector Views, which focuses on key concerns over the coming year. The FCA said clients who stay with their existing insurer at renewal invariably pay higher premiums than those who switch or negotiate. The FCA said: "Some of the highest-risk products are often marketed directly to retail consumers with poor communication of the risks involved and implications that the inv...