Interesting and related was the email I got from LV= this morning relating to my house insurance:
Dear Colin,
Before you receive your LV= Home insurance renewal quote, we wanted to let you know about a new regulation by the Financial Conduct Authority (FCA).
The change means we need to make sure your price is the same or cheaper than if you were a new customer with us. And that’s exactly what we’ll do when we calculate your upcoming renewal.
We’ll calculate your price:
• on exactly the same cover you have today, including any add-ons
• using the personal information we hold on your current policy, like your date of birth and employment status
• compared to a new customer price on the same day your renewal was generated
Your renewal price could still go up or down depending on a variety of things like the cost of repairs, or if you’ve made any claims.
If you compare your renewal to a new price from us, they may be different if you've changed things like; voluntary excess, any add-ons, personal information such as your employment status and how you set up your policy (e.g. online or over the phone).
You can be sure your renewal won't be more than if you were a new customer with us, based on exactly the same cover you have today.
You don’t need to do anything just now; your renewal invite will be with you shortly.
If you want to know more, we’ve put together a helpful summary for all our customers at LV.com/gi/fca-faqs
Kind regards,
Heather Smith
Managing Director, LV= General Insurance Retail