Hastings, the motor insurers, have been fined by their governing body the FSA, for failing to treat it’s customers fairly in relation to cancelling over 4,500 incorrectly priced insurance policies.
On two seperate occasions in 2007 the insurance company discovered that an internal system error led to inaccurate insurance quotations being given and some significantly lower premiums quoted.
Hastings cancelled the policies in question, but in doing so failed to give consideration to the policy holder, paying the shortfall to the insurance provider or investigating other possible remedies.
Margaret Cole, FSA director of enforcement, said: “The FSA has stressed to all firms the importance of treating their customers fairly but it is clear from our investigation that Hastings put its own interests ahead of those of its customers.
“The firm failed to consider properly what effect cancelling policies might have on its customers which illustrates that the fair treatment of customers had not been embedded into its corporate culture as our TCF principle clearly requires.”
The FSA have fined the insurer £735,000. Hastings avoided a bigger £1.5million fine by settling the case at an early stage.
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