Co-op rapped over unclear insurance quotes
The Co-op has been ordered to clarify its car insurance quotes after 120,000 customers received unclear information from the firm.
Regulator, the Competition and Markets Authority (CMA), has told the insurer to change its practices, which do not comply with new rules it introduced last August.
Under these rules, insurance companies must clearly disclose extra charges to customers.
But the Co-op failed to tell customers with no-claims bonuses how many extra charges were applied when issuing insurance quotes. This resulted in 90,000 new and 30,000 renewal quotes being issued with unclear details.
It must now ensure that customers are able to see the price they will be charged on the company’s website and in written documents by 1 October 2017.
Until then, new customers will be issued with two quotes - one including no-claims bonus protection and one without.
The Co-op is the only provider to have failed to comply with the CMA’s new rules.
Adam Land, senior director at the CMA, says: “It is very disappointing that a major company such as Co-op Insurance has taken so long to provide this vital information to its customers.
“Before the order came into force, the price and benefits of no-claims bonus (NCB) protection were often unclear to drivers. We expect the Co-op to fully comply with the terms of our directions immediately so that motorists can search more easily for the best deal for them and decide whether or not they want this optional cover.”
A spokesperson for Co-op Insurance says: “For 90% of our new business customers we are already fully compliant with this Order. We are part way through a major transformation programme, which when complete will allow us to be fully compliant and enable us to provide best in class service to our members.”