Brand will become more important following the FCA’s proposed changes to pricing for new and existing customers.

Ratings agency AM Best said the FCA’s proposed remedies surrounding the pricing of policies for renewing customers were likely to drive create higher premiums in personal lines for younger policyholders and more financially secure policyholders.

AM Best said brand and market reputation would likely play a greater role in buying decisions.

It added: “Amid reduced flexibility for insurers to provide new business discounts, other aspects of business profile are likely to play an increasing role in the decision-making process of both potential and established customers.

“This suggests that brands currently enjoying high levels of recognition and customer satisfaction will be best positioned to take advantage, as policyholders begin to take more notice of a company’s customer service levels, the experiences of other policyholders (expressed in online channels), and metrics such as claims approval ratios.”

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