This whitepaper explains why the UK’s FCA introduced pricing reform in the general insurance market and how it is reshaping insurer practices. Prolonged soft market conditions and increasing commoditization pressured insurers to attract new business with low initial premiums. To recover lost margins, many relied on price walking, steadily increasing renewal prices for existing customers. The FCA found this led to significant unfairness, with around six million policyholders paying over 50 percent more than customers with similar risk profiles. The reform aims to restore fairness and transparency in home and motor insurance pricing while forcing insurers to rethink pricing strategies and profitability models.

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