Direct Line Insurance Group plc (LON:DLG), as stated today by the FCA, is undertaking a past business review relating to pricing in motor insurance and home insurance following the implementation of the FCA pricing practices regulation from 1 January 2022.
An error in our implementation of these rules has meant that our calculation of the equivalent new business price for some customers failed to comply with the regulation. As a result, those customers have paid a renewal price higher than they should have.
Redress will be paid to any affected policyholder. The current estimate of these payments is in the region of £30 million of which half was provided for within the Group’s 2022 full year results.
This announcement is unconnected to the Direct Line Insurance Group announcement made on 29 June 2023 in relation to the past business review of motor total loss claims.
