Direct Line Group will review its home and motor insurance pricing after charging existing customers more for renewals than new customers would pay.
The company has agreed to this action in line with the Financial Conduct Authority’s pricing rules, marking the first such voluntary agreement in the industry.
Direct Line will identify overcharged customers and offer compensation.
Affected customers will be contacted directly and do not need to take any action at this stage.
This is the first time a formal voluntary requirement has been agreed with a firm in relation to the Financial Conduct Authority’s motor and home insurance pricing rules.