BDO comments on FCA market study into insurance pricing

22 September 2020

Commenting on the final report of the FCA’s market study into the pricing of home and motor insurance, Santi Restrepo, Financial Services Director at BDO said:

“Today’s report should not come as a huge surprise to insurance companies who have had some time to address the fairness and pricing issues identified by the FCA. Smart insurers have already begun aligning new business and existing business prices, putting the customer at the forefront of every pricing decision. However, we have seen different approaches adopted across the market including the capping of renewal rates, auto renewal “opt-in” rather than “opt-out” models and better identification of vulnerable consumers.  

“Third party providers of rating software will have an important role to play and indeed, they have been building software that includes components that look at fairness and pricing principles. Insurers will be able to define what that means to them and embed this bespoke approach in their customer pricing.

“While the FCA’s actions will result in customers being treated more fairly, as renewal books will no longer subsidise new business, insurers with a large existing book of business may see the knock-on effect on their share price. We may also see losers as well as winners when it comes to the premiums consumers pay.”

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Notes to the editors

About BDO

Accountancy and business advisory firm BDO LLP provides integrated advice and solutions to help businesses navigate a changing world.

Our clients are Britain’s economic engine – ambitious, entrepreneurially-spirited and high growth businesses that fuel the economy. 

We share our clients’ ambitions and their entrepreneurial mind-set. We have the right combination of global reach, integrity and expertise to help them succeed. 


BDO LLP operates in 17 locations across the UK, employing 5,500 people offering tax, audit and assurance, and a range of advisory services. BDO LLP is the UK member firm of the BDO International network.

BDO’s global network

The BDO global network provides business advisory services in 167 countries, with 88,000 people working out of 1,800 offices worldwide. It has revenues of $9.6bn.


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