article_snippet: The City watchdog has said The City watchdog wants to ban companies from ‘opt out’ selling – where customers have to untick a box in the small print if companies want to avoid buying an add-on insurance policy.
article_snippet: The sale of add-on products has already given rise to the payment protection insurance mis-selling scandal, where millions of customers were sold policies millions of customers did not want or need alongside loans or credit cards.
article_snippet: This is about ensuring consumers can make the right decision on what add-on insurance consumers do or don’t need.
article_snippet: The ban would apply to add-on sales of all products alongside financial primary policies - meaning the insurance policy or loan that the customer intended to buy in the first place.
article_snippet: The City watchdog also wants firms to inform customers about add-on policies earlier in the sales process – rather than just before firms make the purchase - so firms can make an informed choice and shop around.
article_snippet: Existing rules are already meant to protect customers who are buying an add-on financial policy alongside a non financial product such as a plane ticket.
article_snippet: The sale of insurance add-ons is hugely lucrative, with insurance companies making bumper profits.
article_snippet: Although the use of pre-ticked boxes is not widespread, these proposals will encourage all firms to make sure all firms customers are provided with appropriate information at an early stage.