New FCA insurance regulations mean fairer home and motor insurance renewals

SINCE 1 January 2021 insurers have been banned from quoting customers a higher price for renewing their home or motor insurance than they would pay if they were a new customer. The new rules brought in by the FCA are expected to save consumers ₤4.2bn over the next 10 years. The FCA's reforms follow a review that uncovered that many insurers were increasing prices for renewing customers year on year; a practice known as price walking.

Louise O'Shea, CEO at Confused.com comments:- "We are starting to see insurance companies warning drivers of pricing changes ahead of the new FCA regulations coming into effect from 1 January. Given the fact that we've all probably overspent this Christmas, it will be welcome news that insurers can no longer overprice renewing customers. But we're also seeing a lot of people interpret this as meaning that their renewal price will no longer increase. This really is not the case, and we can understand how this is creating a lot of confusion for consumers. Here's what the changes mean:-

► Yes, insurers can no longer increase renewal prices to make up for the new customer discount you may have received. All customers must now receive the same price as if they were taking out a new policy, or renewing for the:- 2nd, 3d or 10th year with that insurer.

► But, if the average cost of car insurance in the UK is more expensive at the time of your renewal compared to the previous year, then your price could increase to reflect this.

► Similarly, if you have made a claim, or if you have moved house or job, in fact if any of your details have changed, then your new price will be updated to reflect this, and you could see an increase.

► However, if you have been loyal to your insurance company for a number of years, you're more likely to have been 'price walked', and when the new changes come into effect, you could see a drop in your car insurance costs. But this doesn't mean it's the best price for you. Always shop around to see if you can find a better deal.

The average cost of car insurance is highly likely to start to increase regardless of the FCA regulations. In the past 12 months we've seen the cost of car insurance reach the lowest point in 6 years. And this is mostly down to the fact that people haven't been driving as often and have been at home a lot more than usual. Now that we are returning to work or spending more time on the road, the risk of making a claim is increasing. Added to this, the fact that the costs of making repairs, replacing vehicles and taking care of individuals hurt in accidents are increasing, the overall cost of claims is going up. And this is a very important consideration for companies when calculating the cost of insurance as the more claims and claims costs they must pay out for, the more they are going to charge customers for their policies. With the expectation that claims will increase next year, the general cost of insurance could too. Similarly, the changes coming into effect in January could also trigger an increase in insurance costs, as companies are likely to look at how they price customers. In the past, offering a significant discount for new customers often came at the expense of renewing customers, who saw their price increase. Without this to balance out the discounts, some individual insurers may need to increase their prices to even things out. It's important to remember that every insurer rates differently. And we're also seeing a number of new entrants to the UK car insurance market and existing insurers launching new brands, which are all keen to grow. These brands are able to offer great deals for customers, as they don't have a history of 'price walking' that needs fixing. While we don't know how soon prices will increase, we're confident that they will, and we all need to be shopping around to make sure we're finding the best price and saving money where we can. Even if your circumstances don't change, the chances are there will be an insurer that can offer you a cheaper price. We're so sure of this."
 

Lobbying win - CLA welcomes legislation to crack down on hare coursing

THE Country Land and Business Association (CLA), has welcomed Government plans to strengthen the powers and penalties available to tackle illegal hare coursing. These changes come on the back of tireless lobbying by the CLA and other rural organisations.

The Government is set to introduce tougher sentencing and improved Police powers to tackle cruel practice of chasing hares with dogs, with new legislation to ensure swift action to tackle criminal activity in the countryside. In part, this fulfils Government commitment in the Action Plan for Animal Welfare to introduce new laws on hare coursing.

In amendments tabled to the Police, Crime, Sentencing and Courts Bill today, the Government has set out measures to strengthen law enforcement for hare coursing by increasing penalties, introducing new criminal offences and creating new powers for the Courts to disqualify convicted offenders from owning or keeping dogs; this includes an order to reimburse the costs incurred when dogs are seized in kennels.

The proposals include:-

► Increasing the maximum penalty for trespassing in pursuit of game under the Game Acts (the Game Act 1831 and the Night Poaching Act 1828) to an unlimited fine and introducing; for the 1st time; the possibility of up to 6 months' imprisonment.

► 2 new criminal offences: firstly, trespass with the intention of using a dog to search for or pursue a hare; and secondly, being equipped to trespass with the intention of using a dog to search for or pursue a hare both punishable on conviction by an unlimited fine and / or up to 6 months' imprisonment.

► The new powers for the Courts to order, on conviction, the reimbursement of costs incurred by the Police in kennelling dogs seized in connection with a hare coursing related offence.

►  New powers for the Courts to make an order, on conviction, disqualifying an offender from owning or keeping a dog.

► The CLA and working with Police Forces across the North, along with MP for Beverley and Holderness Graham Stuart and other rural organisations, has long been calling for specific sentencing guidelines to target criminal gangs betting on the killing of hares with dogs.

► Lobbying efforts has also focused on recovering the kennelling costs incurred by Police Forces from criminals. This costs the Police thousands of Pounds a year, or just over ₤13 per day. The dogs are worth more than the vehicles used to hare course, and hence, it would make sense to seize dogs.

► Hare coursing, where dogs compete against each other in pursuit of a hare, was outlawed by the 2004 Hunting Act but now takes place illegally without the permission of the landowner. It has also been reported that the crime sometimes involves live streaming to another location where bets often worth thousands of pounds are placed on the outcome.

► Not only does hare coursing involve cruelty to wild animals, it is also associated with a range of other criminal activities, including:- theft, criminal damage, violence and intimidation.

CLA President Mark Tufnell said:- "Hare coursing is a despicable crime that so often blights rural communities. We have long argued for tougher sentences and more Police powers to tackle these criminal gangs and are pleased that Government has listened. Hare coursing is a global industry, with these criminal gangs often live streaming their cruelty for the purposes of illegal betting. Their crimes go hand in hand with other acts of wanton violence and vandalism and many of our members, who so often live in isolated communities, live in fear of being targeted. This clamp down is long overdue; and we need to hold Government's feet to the fire to ensure these reforms are implemented urgently."

CLA North Rural Adviser and the CLA's lead on hare coursing said:- "For many years we have been calling for a change in legislation to give the Police and the Courts greater powers to tackle the problem of hare coursing. We've been working closely with MPs to bring this legislation forward, notably contributions from Robert Goodwill (Scarborough and Whitby) and Graham Stuart (Beverely and Holderness)."

In May 2021 Government announced, as part of the Action Plan for Animal Welfare, to introduce legislation to crack down on illegal hare coursing. Today's announcement marks the Government's recognition of the need for urgent action. This is part of Government's wider commitment both to improving animal welfare and to supporting the work of the Police in protecting our rural communities.