Insurers are sneaky – the FCA must keep a close eye on how they react to price hike bans

New proposals by the financial watchdog mean customers could save a combined £3.7bn over 10 years. Firms will be looking for ways to claw this money back, says James Moore

The City Watchdog says consumers over pay for insurance by £1.2bn through price walking (iStock)

Some good news at last: the insurance industry has been told it’s no longer going to be allowed to rip millions of people off.

The Financial Conduct Authority, in a stinging final report into the general insurance market (for which read home and contents, motor etc), says it’s planning to outlaw “price walking”.

This is the deeply cynical practice whereby insurers steadily “walk up” the price of the policies bought by people who stick with them. Think of it like shooting loyal soldiers in the back.