Direct Line Group will carry out a review after it charged some existing home and motor customers more for their renewals than it would have done if they were a new client, breaching Financial Conduct Authority (FCA) insurance pricing rules. 

UK home and motor insurers are banned from penalising loyal home and motor customers through "price walking” pricing practices. The regulator has estimated the ban will save consumers £4.2 billion ($8.18 billion) over a decade. 

Direct Line has agreed to identify all instances where a customer has been overcharged and provide appropriate redress, the FCA says, and will contact affected customers directly. It is the first time a formal voluntary requirement has been agreed with a firm in relation to the new rules. 

The FCA says the rules ensure renewing home and motor insurance consumers are quoted prices no higher than a new customer through the same channel.  

“We are also making it simpler for customers to stop automatic renewals if they wish to do so. We are also enhancing our product governance rules to ensure that firms deliver fair value on all their insurance products.”