Direct Line Insurance Group, a leading non-life insurer in the U.K., has announced that it will be providing £30 million ($38 million) in redress to customers who were overcharged due to a failure to implement new pricing rules on home and motor policy renewals.
In light of this issue, Direct Line plans to conduct a comprehensive review of all customers who were affected by these failures, ensuring that they were not charged more than they should have been when renewing their policies.
The new pricing regulation, which went into effect on January 1, 2022, was intended to protect consumers and ensure fair pricing practices in the insurance industry. However, an error in Direct Line's implementation of these rules led to the miscalculation of the equivalent new business price for certain customers, resulting in higher renewal prices.
Direct Line has acknowledged this mistake and has taken responsibility for it. The company has already accounted for the expected redress payment in its 2022 accounts, demonstrating its commitment to rectifying the situation and compensating affected customers.
For more information, please contact Direct Line Insurance Group.