Direct Line Insurance Group plc is undertaking a past business review relating to pricing in motor insurance and home insurance following the implementation of the Financial Conduct Authority’s pricing practices regulation from 1 January 2022. The insurer estimates the redress payments to affected customers will be approximately £30m.

In a statement, Direct Line said: “An error in our implementation of these rules has meant that our calculation of the equivalent new business price for some customers failed to comply with the regulation. As a result, those customers have paid a renewal price higher than they should have.

“Redress will be paid to any affected policyholder. The current estimate of these payments is in the region of £30 million of which half was provided for within the Group's 2022 full year results.”

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