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London, Oct 4 (Reuters) - Britain’s market’s watchdog said on Friday that competition in the car and home insurance market was not working well and that it may have to ban or restrict some pricing practices.
The Financial Conduct Authority (FCA) was publishing interim conclusions from its study launched a year ago into how car and home insurers treat their customers in the 78 billion pound ($96.27 billion) sector that serves over 80% of adults in Britain.
“Firms use complex pricing practices that allow them to raise prices for consumers that renew with them year on year,” the FCA said in a statement.
“The options we are considering include limiting pricing practices that allow firms to charge higher prices to consumers who do not switch, for example, restricting or banning margin optimisation based on consumers’ likelihood of renewing.”
$1 = 0.8102 pounds Reporting By Huw Jones, Editing by Lawrence White