Finance Editor, Kael Tripton Ltd - LBS MBA - Verified against FCA Handbook: 14 June 2026
Quick answer
ICOBS 6B (effective 1 January 2022) bans home insurers from charging existing customers more at renewal than they would charge a new customer for the same cover. If your renewal quote exceeds the new customer price, the insurer must reduce it. You can challenge this through the insurer's complaints process and the FOS.
What Is the FCA Price Walking Ban and Does It Apply to My Home Insurance?
Direct answer
Can my home insurer charge me more at renewal than a new customer?
No. Under ICOBS 6B (handbook.fca.org.uk/handbook/ICOBS/6B/), effective 1 January 2022, your insurer cannot charge you more at renewal than they would charge an equivalent new customer for the same cover. This applies to all FCA-authorised home insurers. If your renewal price exceeds the new customer equivalent, you can challenge it through the complaints process and the FOS.
FCA Handbook - ICOBS 6B.2.1 - Verbatim Rule Text Source: handbook.fca.org.uk
A firm must ensure that the renewal price it offers to an eligible non-new customer is not greater than the equivalent new customer price for that customer.
How to Check If Your Renewal Price Complies With ICOBS 6B
Get your renewal notice
Note the renewal premium and the exact cover details -- excess, sum insured, add-ons included.
Get a new customer quote on the insurer's website
Use the same property details, same sum insured, same excess. Do not use comparison sites -- go direct to match the renewal channel.
Compare the two prices
If the new customer quote is materially lower than your renewal (more than a few pounds), this may breach ICOBS 6B.
Write to the insurer citing ICOBS 6B
Email the complaints team: 'My renewal price of X exceeds the new customer equivalent of Y. Under ICOBS 6B this is not permitted. Please revise my renewal price.'
Escalate to FOS if unresolved within 8 weeks
The FOS handles ICOBS 6B complaints. Reference the rule explicitly in your FOS submission.
ICOBS 6B and Consumer Duty: Double Protection Against Unfair Renewal Pricing
Since 31 July 2023, FCA Consumer Duty (PRIN 12) provides a second layer of protection against unfair renewal pricing. Where ICOBS 6B sets a specific rule (renewal cannot exceed new customer price), Consumer Duty Outcome 2 (fair value) requires the insurer to demonstrate that the price represents fair value even before comparing it against new customer rates. An insurer that complies with ICOBS 6B but still charges excessive premiums may still breach Consumer Duty on fair value grounds.
The practical implication: you can cite both ICOBS 6B and Consumer Duty in any renewal price complaint. The FOS considers both when adjudicating.
| Insurer | ICOBS 6B applies? | FOS upheld rate H2 2025 |
|---|---|---|
| Admiral (EUI Limited) | Yes | 63.9% |
| Aviva Insurance | Yes | 56.3% |
| Direct Line / Churchill | Yes | 67.4% |
| LV= (Liverpool Victoria) | Yes | 55.9% |
| Policy Expert (Qmetric) | Yes | 36.8% |
| Lloyds / Halifax | Yes | 78.2% |
Related KT guides
Frequently Asked Questions
What is the FCA price walking ban in home insurance?
The FCA price walking ban (introduced by Policy Statement PS21/5, effective 1 January 2022) prohibits home and motor insurers from charging existing customers more at renewal than they would charge an equivalent new customer for the same cover. Under ICOBS 6B, insurers must calculate a renewal price for each customer and compare it against the equivalent new business price -- if the renewal price is higher, the insurer must reduce it to match the new customer rate.
Does the price walking ban apply to my home insurance renewal?
Yes. ICOBS 6B applies to all FCA-authorised home insurers renewing policies on or after 1 January 2022. It covers buildings insurance, contents insurance and combined buildings and contents policies. It does not apply to commercial insurance or policies sold through non-FCA-regulated intermediaries. As of June 2026, all 19 major home insurers reviewed on Kaeltripton are subject to ICOBS 6B.
How do I check if my renewal price complies with the FCA ban?
Go to your insurer's website and get a new customer quote for equivalent cover -- same property, same sum insured, same excess, same add-ons. If the new customer quote is materially lower than your renewal quote (allowing for small differences in online discount), your renewal may not comply with ICOBS 6B. Contact the insurer in writing, reference ICOBS 6B, and request a revised renewal price.
What can I do if my insurer charges me more than a new customer at renewal?
Complain in writing to the insurer referencing ICOBS 6B and requesting a renewal price that does not exceed the equivalent new customer price. If the insurer does not resolve the complaint within 8 weeks, escalate to the Financial Ombudsman Service (FOS). The FOS has upheld complaints where renewal prices exceeded new customer equivalents and found ICOBS 6B breached. The insurer may also be in breach of Consumer Duty Outcome 2 (fair value).
Does the price walking ban mean renewal prices cannot increase at all?
No. The ban prevents insurers from charging existing customers more than new customers for equivalent cover -- it does not prevent renewal prices from rising if market-wide costs increase. If claims inflation, rebuild cost inflation or reinsurance costs push all premiums up, insurers can increase renewal prices provided they apply the same increase to new customer prices. The ban targets the practice of systematically underpricing new customers and overpricing loyal customers -- not market-wide price increases.
Primary sources
Kael Tripton Ltd is registered with the Information Commissioner's Office under registration number ZC135439.
