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UK markets watchdog to probe car and home insurance charges

Staff Writer |
Britain's markets watchdog is launching a study into how insurers charge for home and motor coverage amid concerns that costs can be higher for long-standing customers than for new ones.

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The Financial Conduct Authority (FCA) said on Friday the terms of reference for the market study would be published in a few weeks.

"The general insurance market study we have announced today will help us examine the issues we have already identified in the market in more detail," FCA Chief Executive Andrew Bailey said, referring to concerns about higher prices for existing customers who renew their policies each year.

The watchdog has powers to change how markets operate in order to increase competition and ensure customers are treated fairly. Past market studies have also led to enforcement action.

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