Committee publication · Correspondence · 14 July 2026

Correspondence from Citizens Advice on consumer finance follow-up, dated 6 July 2026

Summary

Citizens Advice provides follow-up evidence to the Treasury Committee on consumer harms in insurance markets. In 2025, over 7,000 people sought help with insurance problems, primarily motor insurance (3,000 cases). Citizens Advice expresses concern about AI-driven hyper-personalisation increasing price differentials and affordability challenges, criticises the FCA for not pursuing interventions following differential pricing research, and notes disappointment that their proposed voucher scheme for low-income households was not adopted by policy taskforces.

Key findings

In 2025, 7,000+ people contacted Citizens Advice for insurance help: 3,000 motor insurance cases, 1,200+ buildings/contents, 800 life insurance. Common issues: claim refusal, contract terms, cancellation.
High numbers of consumers reduce coverage or cancel policies entirely to afford premiums; some cut spending on other essentials to pay for motor insurance, particularly those reliant on vehicles for work, caring, or disability support.
Citizens Advice concerned that growth of AI and hyper-personalised pricing will increase price differentials, making affordable cover harder to access for vulnerable consumers.
FCA's differential pricing research found pricing largely explained by risk assessment but no follow-up interventions were pursued; Motor Insurance Task Force and Financial Inclusion Strategy failed to address affordability for high-cost consumers.
Citizens Advice's proposed voucher scheme for motor insurance support to low-income households was not taken forward by Financial Inclusion Committee or Motor Insurance Task Force.

Tone

Critical

Topics

consumer-financeinsurancefinancial-inclusionartificial-intelligenceaffordability

Key actors

Citizens Advice, Dame Meg (Treasury Committee), Financial Conduct Authority (FCA), Motor Insurance Task Force, Which?, Anne Pardoe, Dame Clare Moriarty

Notable line

“… we were disappointed that no action followed to explore interventions that could support people who face higher insurance costs.”

Key Quotes

“In 2025, more than 7,000 people sought help from a frontline Local Citizens Advice for help with a problem related to an insurance product.”
— Anne Pardoe · describing scale of insurance-related consumer harm

“We have not yet undertaken detailed analysis of the use of AI in the insurance market, however we are concerned that the growth of AI and ever more personalised pricing could lead to an increase in price di ff erentials …”
— Anne Pardoe · expressing concern about AI impact on insurance affordability

“We were pleased to see that the FCA undertook research to explore di ff erential pricing in insurance. This found that di ff erentials were largely explained by pricing of risk.”
— Anne Pardoe · critiquing FCA's response to its own differential pricing findings

“That's why it's vital for those who rely on use of a vehicle to have a ff ordable access to appropriate insurance cover.”
— Anne Pardoe · highlighting importance of motor insurance access for vulnerable groups

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Source · parliament.uk record ↗