Insurance and consumer duty act 2023

J66998821

Hi

Please could anyone tell me how the consumer duty act applies to home insurance? Unfortunately we had to make 2 claims on our policy in the same year. Both were no fault claims, including a burglary. Our insurance company have said they will no longer insure us next year (although they haven’t treated this as a cancellation of our existing policy). Does the consumer duty act apply here? And what is the best way to go about making a complaint? Many thanks 

user1977

I'm not aware of any change in the (lack of) requirement for insurers to offer you a renewal of a policy. Have you read anything suggesting different? You may be better asking on the Insurance board though.

400ixl

There is nothing that requires an insurer to cover anyone or even offer a renewal quote. I can't see what you have to complain about there.

When you say they have cancelled the current policy, what do you mean. Typically you have to pay the policy in full when they have paid out for a claim, but that does not usually mean the policy is now void and cancelled, it still typically runs until completion.

What correspondence have you had regarding the existing policy? 

pushpull

J66998821 said:

Hi

Please could anyone tell me how the consumer duty act applies to home insurance? Unfortunately we had to make 2 claims on our policy in the same year. Both were no fault claims, including a burglary. Our insurance company have said they will no longer insure us next year (although they haven’t treated this as a cancellation of our existing policy). Does the consumer duty act apply here? And what is the best way to go about making a complaint? Many thanks 

I don't see how warning a consumer, with plenty of time, that they want to end their relationship with you could possibly breach their obligations in relation to Consumer Duty.

They are free to do business with whomever they wish (barring protected characteristics) and they've given you plenty of time to find alternative arrangements for when the policy expires. A complaint under these circumstances seems to be wholly inappropriate.

PHK

Firstly, Consumer Duty is not an Act but a principle and set of rules that firms registered with the FCA have to act in accordance with.

The communication you've received was probably sent because of Consumer Duty. The consumer understanding and consumer support rules mean they have a duty to inform you clearly and in good time of any changes. From what you say it sounds like they have done what they should under Consumer Duty.