Home Insurance FCA Notice (8th July 2021)

Home Insurance policies between 2009 and 2017

Today, the Financial Conduct Authority (FCA) has published the findings of their investigation into the way we communicated with our home insurance customers about the renewal of their policies between 2009 and 2017.

The investigation found that in some letters we sent to customers, we’d used words like ‘competitive’ to describe the price to renew their policy, without having backed this claim up.

It also found that we didn’t give some customers the discounts we’d told them they’d receive. This happened because the renewal letters we’d sent these customers incorrectly referred to a discount.

 

How we’ve put things right

We’re very sorry for what happened. We’ve taken significant steps to improve our home insurance renewal letters and the processes we use to produce them.

We’ve contacted the customers affected by the discount issue and due a payment from us. We’ve written to them to confirm this and made a payment to them. Customers don’t need to take any further action.

 

More information

If you need more information about what happened and how we’ve put things right, we’ve put together the Frequently Asked Questions below.  

Frequently Asked Questions

  • 1.
    I've seen the news about home insurance. What happened?

    The Financial Conduct Authority (FCA) has published findings of their investigation into the way we communicated with our home insurance customers about the renewal of their policies between 2009 and 2017.

    The investigation found that in some letters we sent to customers, we used words like ‘competitive’ to describe the price to renew their policy, without having backed this claim up.

    It also found that we didn’t give some customers the discounts we’d told them they’d receive. We’ve written to the customers affected and due a payment from us. We’ve paid them the missing discount plus interest.

    We’re very sorry for what happened. We’ve taken significant steps to improve our home insurance renewal letters and the processes we use to produce them.

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  • 2.
    I received a home insurance renewal letter from you that use the word ‘competitive’ in it. Will you be compensating me because of this?

    The FCA haven’t set a requirement for us to make compensation payments to customers that received renewal letters that included the words like ‘competitive’. We have taken significant steps to improve our home insurance renewal letters and the process we use to produce them.

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  • 3.
    I had a home insurance policy with you during this period. Was I affected by the discount issues?

    If you were affected by the discount issue and due a payment from us, we’ve already sent you a letter to say sorry for what happened and explaining we’d be making a payment to you.

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  • 4.
    Do I need to do anything?

    No, you don’t need to take any action. We’ve already written to customers affected by what happened and who are due a payment from us.

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  • 5.
    My policy documents say that I benefited from discounts. Does this mean I’ll receive a payment?

    Only certain types of discounts were affected by what happened between 2009 and 2017. We've already written to customers affected and who are due a payment from us.  

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  • 6.
    What have you done to ensure this issue doesn’t happen again?

    We’re very sorry for what happened. We’ve taken significant steps to improve our home insurance renewal letters and the processes we use to produce them.

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  • 7.
    Why didn’t you tell customers about the issue sooner?

    We became aware of the discount issue in 2019 and needed some time to look into what had happened. As soon as we were able to, we started writing to customers affected and due a payment from us. We’ve added interest to any payments we’ve made.

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  • 8.
    I’ve had a payment for the discount error. How has my payment been calculated?

    The amount we’ve paid you is 5% of the premiums paid on the policy between the relevant dates, plus interest. A summary of this calculation is included in the letter we’ve sent to customers affected by the discount issue.

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  • 9.
    When will I receive my payment?

    We’ve written to all customers affected and due a payment from us. The letter we sent included details of how much the payment was for and when we’d be making it to you. Customers don’t need to take any further action.

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  • 10.
    If I’ve taken out other types of insurance with you, like car insurance, am I affected?

    No, only home insurance policies were affected by what happened.

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  • 11.
    The FCA notice talks about the prices of insurance policies. Was I overcharged for my policy?

    The FCA’s findings relate only to what we wrote in our renewal letters to customers and not the prices customers paid for their policy. The FCA didn’t find any concerns with the prices customers have paid for their home insurance policies with us. It’s normal for insurance companies, like ours to provide discounts to new customers which are later removed. From 1st January 2022 a new regulation will be introduced that means existing customers renewing their policy will pay the same as new customers. We welcome this change and will change our policy prices to reflect it.

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If there is anything else regarding your policy that we can help you with then please contact us.

Halifax Home Insurance and Halifax Home Insurance Ultimate are underwritten by Lloyds Bank General Insurance Limited.
Halifax is a division of Bank of Scotland plc. Registered in Scotland No. SC327000. Registered Office: The Mound, Edinburgh EH1 1YZ. Bank of Scotland plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 169628.