Lloyds Banking Group Plc’s insurance unit was fined 90.7 million pounds ($125 million) by the UK Financial Conduct Authority for failing to make sure language in millions of home insurance policies was clear.
The FCA said the insurance division sent nearly nine million communications between January 2009 and November 2017 telling customers they were getting a competitive price when they renewed their policies. The company didn’t take steps to check that was accurate, the regulator said Thursday.
The firm’s renewal letters “risked serious consumer harm,” Mark Steward, the FCA’s executive director of enforcement and market oversight, said in a statement.
The FCA said it was likely that premiums quoted at renewal would have increased over prior rates and were probably higher than prices offered to new customers or those who switched insurers.
“We’ve written and made payment to those customers affected by the discount issue and they don’t need to take any further action,” Lloyds said in a statement. “We’re sorry that we got this wrong.”
Photograph: A brass name plaque outside Lloyds Banking Group Plc bank branch in the financial district of London, UK, on Monday, June 28, 2021. Photo credit: Jason Alden/Bloomberg.
Topics Homeowners
Was this article valuable?
Here are more articles you may enjoy.
German Insurtech Wefox to Replace CEO After Board Rejects Mubadala Sales Plan 
Let Good Adjusters, Not Expensive Lawyers, Make the Difference on Claims, CEO Says 
Ford Recalls 668,000 2014 F-150 Pickup Trucks Over Transmission Issue 
Zurich to Buy AIG’s Travel Insurance Business for $600 Million 
