Speaking today at the UK Industry Summit on Consumer Insurance Law and Regulation in London, Mike Dailly, Consumer Panel working group chair, set out how the Consumer Panel will over the coming year concentrate greater focus on the General Insurance industry. Given the critical role that general insurance can play in protecting and enhancing lives the Panel believes there is more debate to be had about how best to ensure a healthy and customer-focused industry.
Amongst the issues that the Panel will consider are any evidence of price at the expense of quality, difficulties in renewing policies and the increase in insurance complaints. In particular, the Panel is concerned about the over-concentration on price and whether this is leading to a hollowing-out of the benefits provided by insurance policies.
Dailly said: “Price comparison has become the holy grail of the insurance industry in recent years. Yet there are growing concerns about reducing the benefits available to policyholders, leading to a hollowing-out of insurance policies.
"General insurance enhances people’s lives, yet prices have escalated. Worryingly, there are growing numbers of people who simply cannot get insurance for flooding or for their vehicles. With complaints on the rise insurers clearly have some questions to answer on the fairness of insurance policies and current business models.”
