The UK Financial Conduct Authority (FCA) has fined Swinton Group £7.38 million ($12.13 million) for mis-selling “add-on” insurance policies.

It follows the launch of a wider inquiry into such products, which are often sold with holidays, cars and gadgets.

Swinton pursued an aggressive strategy and failed to treat customers fairly when selling add-on policies over the phone, the FCA says.

The insurer did not provide enough information about key terms and failed to properly monitor sales calls.

Swinton has set aside £11.2 million ($18.4 million) for affected customers, with £1.9 million ($3.12 million) already repaid. More than 650,000 customers have been contacted.

The company “prioritised profit” over consumers, according to FCA Director of Enforcement and Financial Crime Tracey McDermott.

FCA CEO Martin Wheatley says he “recently told the insurance industry we were taking a strong interest in the area of add-ons, and our first competition study will take a far-sighted view of the impact of current practice on consumers in this market”.