The Chartered Insurance Institute (CII) wants no time wasted in addressing concerns surrounding pricing practices. Urging insurers to act now, the institute’s call for action comes following a new report from the Financial Conduct Authority (FCA).
The regulator, which in October 2018 published a discussion paper on fair pricing in financial services, has now released its feedback statement after receiving more than 50 formal responses from stakeholders.
Part of the FCA’s 25-page statement reads: “We regulate in the public interest, and if there are wide held views that a particular pricing practice is unfair then we should at least seek to understand why.
“If consumers do not believe firms are engaging in fair pricing practices, then there could be damaging effects on trust in markets and institutions and ultimately the integrity of the market. This in turn could lead to reduced engagement among consumers.”
Concurring, CII director of policy and public affairs Dr Matthew Connell offered his views on the matter.
“Anyone who chooses to ignore society’s view of pricing practices will find that there are a large number of key players, including consumer groups and select committees, who will ensure that the issue is high on the regulatory and legislative agenda,” asserted Connell.
“The real question is, will practitioners wait for these issues to be brought to their attention, or will they actively seek them out? The CII’s Trust Index, which was refreshed in June 2019, gives strong pointers to professionals about how they can improve public trust.”
Available on the institute’s website, the index identifies the main areas of concern for buyers of personal and commercial insurance.