Gareth Shaw, Head of Money at Which?, said:
“The regulator is rightly proposing action to stop insurance firms from exploiting their loyal customers with sharp pricing practices. Our research has found that existing insurance customers are often punished with vastly overpriced premiums when little has changed in the service they receive.
“The FCA must move swiftly to introduce these changes and closely monitor insurance firms to ensure they do right by their loyal customers and show that it is ready to take strong action against insurers who game the system.
“Insurers need to be more transparent about the factors that they use to set prices and the regulator must carry out further work looking at what factors firms should be prohibited from using.”