Insurer Blames FCA Reform, Claims Inflation For Premium Fall
By Irene Madongo (August 2, 2022, 3:17 PM BST) -- Direct Line Group blamed a hit to its premiums on Tuesday on the finance watchdog's new pricing regulations and "heightened claims inflation," as the insurance giant said the reforms have also dented its profitability.
Penny James, Direct Line's chief executive, said "uniquely complex" conditions in the motor market in the first half of the year had challenged the insurance company's short-term profitability.
Financial Conduct Authority reforms introduced in January ban insurance companies from quoting a higher price for existing customers seeking to renew their home and motor insurance than they offer to new consumers. The practice is known as price-walking, dual pricing or the loyalty...
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