What the City watchdog had to say

THE Mail on Sunday provided the Financial Conduct Authority with details of Richard Ansell’s case (although not the name of the insurer involved).

It said there could be four explanations for the difference between his original renewal quote and the price he eventually negotiated after shopping around.

First, it said there was a short grace period – to the 17th of this month – for insurers who couldn’t make the required technical adjustments in time for the January 1 start. LV has insisted to The Mail on Sunday it was already compliant with the new rules in advance of them coming into force.

Second, the regulator said firms are allowed to change their pricing over time, so a renewal quote issued one week would not necessarily be the same as one two or three weeks later.

In Richard’s case, the time difference between the original £450.13 quote and the revised £313.53 quote was only four days.

Third, it said the revised premium might not be on a like-for-like basis. Although LV originally said the new premium reflected changes to Richard’s policy, this is contradicted by the policy details Richard received on January 9 and January 13.

Finally, the FCA said the firm could be non-compliant. LV insists it is ‘fully’ complying with the rules.