Britain's financial regulator said on Friday it will move to protect consumers from so-called loyalty penalties in motor and home insurance, potentially saving an estimated 4.2 billion pounds ($5.95 billion) over 10 years.
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The Association of British Insurers and the U.K. government will end the trade credit reinsurance program for businesses on June 30, as insurers suggest that they are ready to underwrite businesses without any assistance.
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The change, which begins in January, is expected to save customers an estimated £4.2billion over a decade. It means those who have been unwittingly paying unreasonably high premiums – around six million policyholders – could have them slashed when the measures come into effect.
The changes will put an end to the very high prices paid by many loyal customers , the regulator said.
On average a new customer pays £285 for motor insurance while those who have been with their provider for more than five years pay £370. I saved £1,000 by finding a new provider
Sam Devo s car insurer failed to reward his loyalty so he took his business elsewhere
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