HOME and car insurance companies face being banned from charging customers more when they renew their policy.
The city watchdog argued that existing customers shouldn’t pay more for their insurance than a new customer.
The proposals come after the Financial Conduct Authority (FCA) found that 6million policyholders could save a collective £1.2billion a year if they paid the average premium for their risk.
FCA interim chief executive Christopher Woolard said the measure would "put an end to the very high prices paid by some long-standing customers".
He added: "We are consulting on a radical package that would ensure firms cannot charge renewing customers more than new customers in future.
"The package would also ensure that firms focus on providing fair value to all their customers. We welcome feedback on the proposals."
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