22, April 2015: The discovery of UK consumers purchasing £100m of unwanted insurance due to pre-ticked ‘add-ons’ has sparked outrage from the Financial Conduct Authority (FCA). Plans are now being firmly put into place for all add-on cover to be banned from insurance websites.
Renowned travel insurance company, Insuremore, are showing their support for the FCA’s plans with their website remaining add-on free. An Insuremore spokesperson said, “Having never used pre-ticked add-ons on our website we were shocked to discover the large amount of sales that were being conducted without the customer being aware. The FCA are taking the only appropriate action in order for the insurance industry to be able to earn the trust of consumers again.”
The FCA’s investigation discovered that one in five people are unaware that they are buying an add-on alongside their insurance policy, as their attention is firmly placed upon the main product they're purchasing. Pre-ticked add-on cover, otherwise known as opt-out selling, has resulted in consumer expenditure of over £100m annually.
The FCA has deemed this practice as unacceptable, as the failure to 'untick' a box is classed as not allowing the customer to make an informed choice. Insuremore are one of few online companies that have already opted out of add-ons, and the rest of the insurance industry is soon to follow in their footsteps - including home insurance, motor insurance, mortgage, credit card, mobile phone, and many more.
Travel insurance companies have come under particular scrutiny as misleading policies can lead to holidaymakers not being as well covered as they may have thought. Leading airline companies have also been known to include opt-out travel insurance, meaning consumers who fail to see the pre-ticked box will automatically pay more than they initially agreed. With the introduction of the FCA ban, holidaymakers can once again make informed decisions without the threat of being charged for unwanted add-ons.
Insuremore provide a range of low-cost travel insurance policies for the B2C market, including single-trip, multi-trip and family insurance. Contact them at http://insuremore.co.uk/
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