author-image
COMMENT

Anne Ashworth: Loyalty penalty rip‑off needs to end now

Anne Ashworth
The Times

The news that the nation pays £1.2 billion too much for home and motor insurance is scarcely a revelation. We already know that we feel “ripped off, let down and frustrated”, as the Competition and Markets Authority — a watchdog — put it almost a year ago, over the penalties payable in return for loyalty to a bank, mortgage lender or mobile phone operator.

Has your home insurance premium gone up, but you haven’t made a claim? You need to ask your insurance company why
Has your home insurance premium gone up, but you haven’t made a claim? You need to ask your insurance company why

These businesses are happy to exploit fidelity, preferring to offer discounts to newcomers rather than to reward longstanding customers, who it is assumed will be either apathetic or too busy juggling family and work responsibilities to shop around. It would be interesting to learn, however, when the Financial Conduct Authority (FCA), the industry regulator, will act to end these practices, especially