LONDON (Reuters) – Roadside restoration and insurance coverage group RAC is contacting breakdown coverage clients after a warning from Britain’s markets watchdog that it had damaged transparency guidelines governing renewal paperwork.
Under rules launched final April, firms have to obviously present a proposed renewal premium alongside the premium a buyer paid the earlier yr. They also needs to encourage clients to buy round.
The Financial Conduct Authority (FCA), which final yr reprimanded home and motor insurer Admiral over its renewal insurance policies, mentioned on Tuesday the RAC was the most recent company to conform to contact affected clients for breaching guidelines on data disclosure.
“It is simply unacceptable to see that some firms are still not being properly transparent with their customers a year on from the introduction of the rules,” mentioned Jonathan Davidson, an government director of supervision on the FCA.
More than a million RAC clients won’t have had the precise data to resolve whether or not to hunt a greater deal elsewhere and could possibly be due compensation, one supply conversant in the matter mentioned.
The RAC, which is owned by non-public fairness agency Carlyle, mentioned it will contact affected clients over coming months.
A spokesman mentioned the company recognised that some data in its letters had not been clear sufficient.
“While our breakdown policy renewal documentation did accurately contain all the necessary information, we recognise that some of the key information in our letters was not as prominently displayed as it should have been,” he mentioned.
Admiral apologised final yr after the FCA mentioned it gave inaccurate data to some clients who renewed insurance policies.
Reporting by Kirstin Ridley and Carolyn Cohn; Editing by David Holmes and Mark POtter