FCA probe into insurance should extend to SMEs
The Financial Conduct Authority (FCA) market study on general insurance pricing practices should be extended to cover small and medium sized businesses too.
So says the BVRLA as it argues that SMEs are equally as vulnerable as consumers.
The FCA has expressed concerns that general insurance pricing practices have the potential to cause harm to consumers, particularly those who are vulnerable.
In response, BVRLA chief executive Gerry Keaney said: “We welcome the FCA’s focus on insurance pricing practices and will be more than happy to work with them as they embark upon this market study. We would however, like to see the scope of work expanded to include small and medium-sized businesses as they too are vulnerable when it comes to suffering the effects of unfair and discriminatory insurance pricing.
“Only two weeks ago, the FCA confirmed plans to extend access to the Financial Ombudsman Service to more small and medium-sized enterprises, which is a great indicator that the regulator is keen to also protect the interests of small businesses.
“BVRLA members are increasingly raising their concerns about unfair pricing practices where their premiums have drastically increased with little or no explanation – we believe we need greater transparency and competition in the motor insurance market.”