/ Home & Energy, Money, Motoring

Update: insurers must now print last year’s premium on renewal notices

In a big win for our ‘Don’t pay a premium’ campaign, the Financial Conduct Authority has announced proposals that will require insurers to publish details of last year’s premium on your renewal notice.

The FCA’s proposals are backed by its trial of more than 300,000 UK consumers, which tested reactions to different types of information being provided at renewal stage. Printing last year’s premium on renewal notices had by far the biggest impact, with 11-18% of people switching or negotiating a lower premium on their home insurance.

It’s a simple change and a win for the more than 30,000 people who supported our ‘Don’t pay a premium’ campaign. It should help people save money as our research has found that seeing last year’s premium encourages people to shop around or haggle for a better deal with their current insurer.

Support for printing last year’s premium

Charlie C told us on Which? Conversation last year:

‘My home insurance renewals have just come in and I was just thinking how it would be useful to have last year’s premium printed on the renewal notice… and then saw this!

‘I would support printing last year’s premium and in fact think it is scandalous to see the increases just hidden like this. Mine were set 20% higher this year, with no changes on my side and no claims.’

Treating customers fairly

The FCA is also reminding insurers of their obligations to treat customers fairly, especially their treatment of loyal customers at renewal stage.

Christopher Woolard, director of strategy and competition at the FCA, said:

‘We hope the proposals encourage more people to shop around for the best product for them. It is important that insurers give their customers the information they need to do this and ensure they’re treating their customers fairly.’

The FCA is now asking for feedback on its proposals in a consultation that will close on 4 March 2016. We’ll be responding on behalf of the more than 30,000 people who backed our campaign – this is your win!

Update: 16 August 2016

Some good news finally emerged from the FCA last week with an announcement for implementation of the new rules for insurers and renewals notices – so it’s still a win for the campaign!

However, the expectation had previously been for these new rules to be in force by 1 January 2017, but firms must now comply by 1 April 2017.

The FCA has stated that information should be included clearly, accurately and prominently at renewal, and in a place that makes it easy to compare with the renewal quote. If adjustments were made over the course of the policy term then the insurer must include an annualised premium that will reflect those changes. This will apply to all annual and 10-month insurance policy renewal notices.

We’re hoping that insurers won’t wait until the last minute to comply with these new rules and start to introduce these changes to help their customers as soon as possible.

Update: 3 April 2017

As of 1 April, insurers must now show the price of last year’s premium on their renewal notices to show customers how much their policy has increased by.

Three years after Which?’s campaign for a more transparent renewal process began, the Financial Conduct Authority (FCA) has made it compulsory for insurers to make their pricing clearer to customers, along with advice about shopping around.

In an attempt to stop longstanding customers paying more for the same cover than new customers do, insurers will also have to identify customers who have renewed with them for four consecutive years.

The renewal notices to these customers must then contain an additional message encouraging them to shop around.

The new rules apply to general insurance products including car and home insurance. The FCA estimates that they will benefit consumers by £64 million to £103 million per year.

Are you due to renew your car or home insurance policy soon? Have you noticed any changes to your renewal notice?


I am happy to see insurers required to print last year’s premium on my renewal notice, but I usually forestall them by going somewhere else before expiry. If I could trust them to play fair every time I would probably await the renewal letter. I think every quotation should be their ‘best and final’ and not an opening bid in a bartering game.


Thanks Richard. It’s good to have some encouraging news on Which? Conversation.

Having to quote last year’s premium might put an end to annual price hikes. The danger is that insurers might reduce cover, in the same way that supermarkets reduce pack sizes as an alternative to putting up prices.

Not only do we need to be able to compare the premiums for this year and the covering year but we need to have a clear statement of any reduction in cover or increase in excess.


Be glad to see this proposal come into force, just received my car insurance renewal for next year [2016] and you guessed it up considerably.


Isn’t it funny that when you get your premium renewal all you need to do is ring them up and in seconds they can ‘reduce’ the premium or enter a ‘discount code’ and wham, your premium is back down to where it was. How many people just automatically renew and get a price increase?

kel meyler says:
18 August 2016

There is no question what ever renewal you are looking for from various insurance, energy, telephone/broadband, banking, people should not except any renewal quote at face value, shop around and test the marketplace. One day your existing company will get the message ‘look after loyal customers’, until then show them no loyalty at all.


Loyalty is an illusion for many, kel. It is not an essential factor for most businesses, nor most consumers in my view. “Loyalty” cards, for example, simply extract data from the customer, and give benefits in return – just a business relationship I believe. I have no hesitation in shopping around to get the best deal; my priority is to spend my money prudently where I can, not to support an anonymous organisation. Exceptions of course would be organisations where have friends, and family naturally. I think we should ditch the idea that any company (or public body for that matter) is going to, in general, be loyal to us and concentrate on the reality of relationships.

kel meyler says:
4 April 2017

Agreed Mal, biggest example of where loyalty went out the window is the Energy companies,. During austerity period they did not care a toss about their customers just put their tariffs up by horrendous amounts absolutely no consideration for the bill payer just profit driven. That is when all if any loyalty went out the window . As an add on I have just changed Home Insurance to another company same level of cover at a lower renewal fee.


I wrote on another Convo that my car insurance with Esure was £416 , which on checking was double what I paid them 3 years ago . I changed to Co-op and they charged me £249 and canceled my DD with Esure . It is significant that they never got in touch with me either by phone or by email , somebody was making money out of me and I feel ripped-off !