No more sneaky price hikes as insurers forced to tell you last year's costs

The City Watchdog is planning to make insurers tell customers how much past premiums were when they renew

You'll soon know how much you've been paying for motor and home insurance (Getty)

Good news - the City Watchdog is going to force insurers to tell consumer what their previous year's premiums were. It will mean they will no longer be able to slip through sneaky price hikes.

The Financial Conduct Authority said its proposals aim to deal with worries that consumers end up paying higher prices by remaining loyal to an insurer, particularly for a long period of time.

Christopher Woolard, director of strategy and competition at the FCA, said: “We hope the proposals encourage more people to shop around for the best product for them. It is important that insurers give their customers the information they need to do this and ensure they’re treating their customers fairly.”

Insurers welcomed the move. Huw Evans, director general of the Association of British Insurers, said: “It will help customers and encourage them to engage with the policy they choose and what they get for their money.”

But Andrew Hagger of Moneycomms.co.uk said the change was well overdue. “It's disappointing that it’s been down to the regulator to have to force this through - it's basic transparency and information that customers should have already been receiving as a matter of course.”

Which? campaigned for the move last year and executive director Richard Lloyd, said:​ “This simple change should help people save money by prompting them to shop around or haggle for a better deal with their current insurer.”

As well as requiring firms to disclose last year’s premium on renewal notices, the FCA is also proposing they identify and prompt consumers who have renewed four times or more.

The regulator has also reminded firms of their obligations to treat customers fairly, and to consider how their approach to renewal pricing in general, and the treatment of long-standing customers in particular, delivers fair outcomes to consumers.

It’s seeking feedback on its proposals by 4 March 2016.