Motor Insurance Pricing Practices: Supervisory Focus

Supervisory attention on motor insurance pricing practices continues, with particular focus on whether pricing models produce outcomes consistent with fair value obligations across different customer segments, including long-tenured customers.

Insurers should expect continued scrutiny of the gap, where it exists, between new business pricing and renewal pricing for otherwise comparable risk profiles — a pattern that's drawn sustained supervisory interest across the market.

We recommend insurers conduct an internal pricing fairness review ahead of any supervisory request, specifically examining renewal pricing patterns for evidence that would be difficult to explain under a fair value framework.

This briefing reflects Alden Advisory's general commentary on a developing regulatory topic and is not legal or regulatory advice. Firms should seek specific guidance for their own circumstances.