Loyalty penalty for boiler & heating cover ... what's the point of new anti price-walking regs?

ColinB

Just had my renewal quote for boiler & CH cover from SSE ... £224. Went on Uswitch to see if I could better it and found exactly the same product (same name, same cover, same excess) for £153. Buried deep in the small print several clicks down was the statement that this price only applied to new customers. Hang on, I thought, insurers are not now allowed to charge existing customers more so phoned them and they were adamant that the new anti price-walking regulations didn't apply to them. They refused to requote at the lower price. Their argument was that, because I was an existing customer they knew all about my boiler and had quoted accordingly (which is bizarre if they were prepared to offer a lower price to someone they didn't know). Seems to me that's a loophole that any insurance company could use to avoid the new regulations, so I have to wonder if they're actually pretty toothless. 

Sandtree

New regs are only for Home and Motor insurance... doesnt cover pet, travel, boiler etc plus many boiler covers are service plans not insurance

ColinB

Sandtree said:

New regs are only for Home and Motor insurance... doesnt cover pet, travel, boiler etc plus many boiler covers are service plans not insurance

Thanks for that useful clarification. Just to be clear, my boiler & CH cover is an insurance product, not a service plan. However, I wasn't aware that the new regulations only applied to certain products (I'm sure some of the publicity didn't specify that important point, just referred to "insurance" in general). So I guess they have me over a barrel ... and can't change provider because no-one else will take on a boiler that's in good nick but 20 years old. 

Sandtree

The FCA's concentration will always be on the technical side and ultimately they cannot control how the press decide to report it but for example this site published:

Car and home insurers to be banned from charging renewing customers more than newbies in loyalty penalty crackdown (moneysavingexpert.com)

And for completeness, the FCA's own PR...
FCA confirms measures to protect customers from the loyalty penalty in home and motor insurance markets | FCA

In both cases they do say its only Home and Motor but most people probably didnt note it compared to the broader story.